Food & drink business europe – july:august 2017 by Colin Murphy

July/August 2017

Carlsberg Group sets sail on new course

Food & Drink Business Website:

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C o n t e n t s

- 3 M ERGERS & A CQUISITIONS

- 63 & 67 C HEESE & W HEY

Coverage of British and international deals.

Healthy prognosis for global whey ingredients market. ‘Whey better than ever’ - 8th International Whey Conference. PAGE 4

- 11 & 17 C OVER S TORY Carlsberg Group sets sail on new course.

Janet McCollum, CEO, Moy Park.

P AGE 39

David MacLennan, CEO, Cargill.

- 72 M ARKET F OCUS Ice cream whips up global sales of 13 billion litres.

Carlsberg Group to achieve zero carbon emissions at its breweries by 2030.

R EGULARS Information Technology . . . . . . . . . . . . 19

- 21 B EVERAGES

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Agust Gudmundsson, CEO, Bakkavor.

Bottling & Packaging . . . . 19, 42. 43. 46-48. 66

Health conscious consumers reshaping the beverages market.

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Processing & Manufacturing . . . . 23, 51-55, 65

Henri de SauvageNolting, CEO, Cloetta.

Storage & Logistics . . . . . . . . . . . . . . . . . . . 45 Control & Automation. . . . . . . . . . . . . . . . . . 56

- 25-37 B EVERAGES – D RINKTEC 2017

Energy & Environment . . . . . . . . . . . . . . . 59-61

A record line-up For Drinktec 2017.

Materials & Ingredients . . . . . . . . . . . . . . 67-71

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Henrik H Andersen, CEO, Arla Foods Ingredients.

The global beer market continues to surprise. Managing Director: Colin Murphy Editor: Mike Rohan

Drintec 2017 Previews.

Group Operations Manager: Sylvia McCarthy

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Bob KunzeConcewitz, CEO, Gruppo Campari.

- 39 P OULTRY

Advertising: Ian Stewart, Rachel Howard and Tony Lambert Production Manager: Sylvia McCarthy

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Cargill invests in sustainable poultry expansion.

- 49 F RESH P REPARED F OOD

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Bakkavor in strong position to sustain longterm growth.

Cees ‘t Hart, CEO, Carlsberg Group.

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Danone Sells Stonyfield to Lactalis For $875 Million

Activist Hedge Fund Takes $3.5 Billion Stake in Nestlé

Danone has agreed to sell Stonyfield, its organic yogurt business in the US, to Group Lactalis, the French dairy and international giant, for $875 million. The purchase price represents 20 times Stonyfield’s EBITDA in 2016. Stonyfield generated approximately $370 million in turnover in 2016. “As the leader in organic dairy in France for over 20 years, the acquisition strengthens our group’s position in this rapidly growing category,” comments Emmanuel Besnier, president of Group Lactalis. The disposal of Stonyfield is part of the agreement reached with the US Department of Justice in connection with Danone’s recently closed $12.5 billion acquisition of WhiteWave, a global leader in organic foods. The transaction is conditioned upon approval by the US Department of Justice, and is expected to conclude in the third quarter. Danone and WhiteWave are combining their activities in North America to operate as a strategic business unit, named ‘DanoneWave’.

Third Point, the New Yorkbased activist hedge fund, has purchased a 1.3% stake in Nestlé for SFr3.28 billion ($3.5 billion). Third Point is urging the world’s largest food group, which is now under new leadership following the accession of new chief executive Mark Schneider, to improve its margins, shed non-core businesses, including its 23% stake in French cosmetics firm L'Oreal, and to buy back shares. According to Third Point, in order to succeed, Mark Schneider will need to articulate a decisive and bold action plan that addresses the staid culture and tendency towards incrementalism that has typified the company’s prior leadership and resulted in its longterm underperformance. The hedge fund advocates the establishment of a formal profit margin target of 1820% by 2020 – against Nestlé’s current margin of about 15.3% - in order to help improve productivity. To generate capital to buy back stock, Third Point has suggested that Nestlé should more than double its debt load and sell the L’Oreal stak,e valued at about $27 billion. Third Point was founded in 1995 by Daniel S Loeb, who serves as chief executive officer and oversees all investment activity. The stake in Nestlé is the largest ever taken by Third Point.

Diageo to Acquire Superpremium Tequila Brand For $1 Billion Diageo has agreed to acquire Casamigos, the fastest growing super-premium tequila brand in the US. The deal provides an opportunity for Diageo to strengthen its participation in the fast growing tequila category, as well as expand the brand internationally. The transaction values Casamigos at up to $1 billion, with initial consideration set at $700 million and a further potential $300 million based on

a performance linked earn-out over 10 years, reflecting the brand’s exceptional growth trajectory and upside potential. Casamigos was created in 2013 by founders Rande Gerber, George Clooney and Mike Meldman. The essence of the brand, ‘made by friends for friends’, is reflected in the name, Casamigos or ‘house of friends’. The brand’s quality and uniqueness has delivered impressive growth, reaching 120,000 cases in 2016, primarily in the US, and a CAGR of 54% in the last two years. The brand is on track to reach over 170,000 cases by the end of 2017. The transaction is expected to close in the second half of calendar 2017, subject to regulatory clearances. Diageo expects the transaction will be EPS neutral for the first three years and accretive thereafter. The acquisition will be funded through existing cash resources and debt. Ivan Menezes, chief executive of Diageo, comments: “We are delighted to announce this transaction to extend our participation in the tequila category. It supports our strategy to focus on the high growth super-premium and above segments of the category. With the global strength of Diageo we expect to expand the reach of Casamigos to markets beyond the US to capitalise on the significant international potential of the brand. We look forward to building on the remarkable success of Casamigos to date.”

sale of a 60% interest in its Dairy Ireland business to Glanbia Co-operative Society. Dairy Ireland is comprised of two business units - Glanbia Consumer Foods Ireland and Glanbia Agribusiness. In 2016, Dairy Ireland generated revenue of Eur616.2 million, EBITA of Eur30.7 million and an EBITA margin of 5.0%. In return for its 60% stake in Dairy Ireland, Glanbia plc will receive Eur112 million together with the equivalent to 100% of the amount of the working capital in Dairy Ireland at completion. Dairy Ireland will now be combined with Glanbia Ingredients Ireland (GII), which was established in 2012 as a dairy processing joint ven-

ture owned 40% by Glanbia plc and 60% by Glanbia Coop. The enlarged GII will be owned 40% by Glanbia plc and 60% by Glanbia Co-op and will be known as Glanbia Ireland. The deal will create an integrated business of scale which is the largest dairy processor in Ireland. It is envisaged that Glanbia Ireland will embark on a Eur250 million to Eur300 million strategic capital investment programme in the period 2017 to 2020.

Scandi Standard to Acquire Irish Chicken Processor

Glanbia Completes Sale of 60% Interest in Dairy Ireland Business Glanbia plc, the global nutrition group, has completed the

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

Sweden-based Scandi Standard, the leading chicken producer in the Nordic region, has agreed to acquire Manor Farm, the largest chicken processor and market leader in the Republic of Ireland, in a deal worth Eur94 million. Payment will be partly in the form of Scandi Standard shares. There is also an earn-out mechanism. Completion of 3

M E E R R G G E E R R S S M the transaction will require approval at an extraordinary general meeting of Scandi Standard later in the summer. Manor Farm is one of Ireland’s oldest family businesses, dating back to 1775. The company sources and processes approximately 50% of all fresh chicken sold in the Irish retail market and approximately 25% of all chicken consumed in Ireland. The business focuses on fresh products for the retail market, selling to a diversified customer base. It operates a processing plant at Shercock in County Cavan. Manor Farm had net revenues of Eur164 million and EBITDA of Eur13 million in 2016. Scandi Standard was created in June 2013, by gathering the largest poultry operations in the Nordic region into one collective group. At present, the group has an annual turnover of approximately SEK5.2 billion and almost 1,700 employees. Leif Bergvall Hansen, chief executive of Scandi Standard, comments: “I am enthusiastic about the deal as Manor Farm

satisfies all of our acquisition criteria. The company has profitability in line with our existing operations, is well run and is the clear market leader in chicken in the Irish retail market. With its capable and experienced management team, the business can be run with a high degree of autonomy whilst additional steps, which have been identified, can be taken to capture the benefits of best practice. As many of our risks are country specific, the acquisition is also likely to reduce our earnings volatility through diversification.”

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Fane Valley and ABP to Extend Joint Venture Arrangement Northern Ireland-based Fane Valley Co-op and ABP Food Group, the Irish and international meat processor, are to extend their joint venture relationship to include Linden Foods, the UK-based meat processing business of Fane

Valley. The partnership will see Republic of Ireland-based ABP Food Group take a 50% stake in the Linden Foods company. An agreement in principle has been reached by both parties subject to approval by the relevant regulatory and competition authorities. Linden Foods is an award winning fresh meat processor with facilities in Dungannon (Northern Ireland), Burradon (England) and Kettyle Irish Foods (Fermanagh). The announcement follows last year’s Slaney Foods and Irish Country Meats joint venture between both parties in the Republic of Ireland. Trevor Lockhart, chief executive of Fane Valley Co-op, says: “Linden Foods is a growing company within the UK red meat sector, delivering the highest levels of innovation, quality, service and value to its long established customer base. The business continually challenges the way it works, seeking out new ways to advance and improve. Our experience of working closely with ABP Food Group in the

Republic of Ireland has been extremely positive and we now wish to build on this success.”

controls JBS and other assets, being fined a record R$10.3 billion ($3.1 billion) by the Brazilian authorities.

Moy Park Put Up For Sale Brazil-based JBS, which is the world’s largest meat processing company, is to sell its Moy Park business as part of a wider divestment programme of non-core and less strategic assets. Based in Northern Ireland, Moy Park is one of Europe’s largest poultry producers. It was acquired by JBS for $1.5 billion in September 2015 and became the central element of the Brazilian group’s European business. Moy Park had been previously owned by Marfrig Global Foods, another Brazilian food group, since 2008. Janet McCollum, chief executive of Moy Park, comments: “Moy Park is a successful and growing food business with a solid financial standing. I have no doubt that our success is due to the great strengths of this business - our exceptional people, innovation and performance. I also know that this will ensure our continued growth and stability well into the future. Our priority remains business as usual delivering outstanding quality, innovation and service to our customers and consumers.” In addition to Moy Park, JBS also intends to sell its 19.2% shareholding in Vigor Alimentos and its Five Rivers Cattle Feeding assets and farms. The divestment programme is intended to reduce net debt and consequently strengthen JBS’ financial structure. The divestment programme is expected to result in a capital injection of approximately R$6 billion ($1.8 billion) in addition to the R$1 billion already announced by JBS with the sale of operations in Argentina, Paraguay and Uruguay. The disposals have been prompted by JBS’s involvement in a series of corruption scandals which resulted in J&F Investimentos, the Batista family holding company that

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

Janet McCollum, chief executive of Moy Park.

Nestlé Enters Online Prepared Meals Market in the US Nestlé has acquired a minority interest in Freshly, a leading provider of Direct-toConsumer (DTC) healthy prepared meals, which currently supplies consumers in 28 states in the US with weekly shipments of meals. As the lead investor in the $77 million round of new funding just announced by Freshly, Nestle is entering an online prepared meals market that is

currently $10 billion in size in the US and expected to grow at very attractive rates. The investment by Nestlé will help to fund Freshly's construction of a new East Coast kitchen and distribution centre in 2018, as it prepares to expand to nationwide service. Headquartered in New York with operations in Phoenix, Freshly was founded in 2015 and currently employs 400, with plans to hire additional employees over the next 12 months. Nestlé in the US consists of eight main businesses: Nestlé USA, Nestlé Waters North

M E E R R G G E E R R S S M America, Nestlé Nutrition, Nestlé Professional, Nespresso, Nestlé Health Science, Nestlé Skin Health and Nestlé Purina PetCare Company. The United States is Nestlé’s largest market with combined product sales totalling more than $27 billion in 2016.

Cloetta to Divest Italian Operations Cloetta, the Swedish confectionery group, has agreed to sell its Italian business, Cloetta Italy, to Katjes International, the German sugar confectionery company. The deal has enterprise value of approximately SEK450 million (Eur47 million). The proceeds will generate a positive net cash effect of approximately SEK415 million. “This is a very good solution for all parties and follows Cloetta’s strategy to focus more on its business in NorthWestern Europe including the recently acquired Candyking business,” says Henri de Sauvage-Nolting, chief executve of Cloetta. Cloetta Italy operates four factories and produces and sells brands such as Sperlari, Saila, Dietor, Galatine and Dietorelle. In 2016, Cloetta Italy had sales of SEK 745 million. The transaction is not subject to regulatory approvals and is expected to close in the third quarter of 2017.

Henri de Sauvage-Nolting, chief executve of Cloetta.

Ferrero International Completes US Chocolate Confectionery Acquisition Ferrero International, the Italian confectionery group, has completed the acquisition of Fannie May Confections

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Brands and the Harry London chocolate brands in the US from 1-800-FLOWERS.com, a multi-brand provider of gourmet and floral gifts. The acquisition includes all operations of Fannie May, together with the manufacturing facility in Ohio and two warehouse and distribution facilities, located in Ohio and Illinois. Fannie May is a manufacturer of premium chocolates and confections and was founded in 1920 in Chicago, Illinois. The company has grown into one of the most well-known and loved premium confectionery brands in the Midwestern United States. Founded in 1946, Ferrero is the third-largest company in the global chocolate confectionery market, with global sales of over $11 billion, distribution across over 160 countries, and a workforce of more than 30,000 people across 53 countries. Ferrero entered the US market in 1969 with Tic Tac mints. The company subsequently introduced Ferrero Rocher pralines and Nutella hazelnut spread.

Campbell to Expand in Faster Growing Health and Well Being Categories Campbell Soup Company, the US-based food group, is acquiring Pacific Foods for $700 million in cash. Founded in 1987, Pacific Foods is a leading US producer of organic broth and soup, and also produces shelf-stable plant-based beverages and other meals and side dishes. Organic food is a more than $11 billion category in the US, which grew at a compound annual growth rate of 15.3% over the past four years. Denise Morrison, president and chief executive of Campbell Soup Company, says: “The acquisition allows us to expand into faster-growing spaces such as organic and functional food. Moreover,

Pacific Foods is an excellent fit with Campbell - strategically, culturally and philosophically. It advances our strategic imperatives around real food, transparency, sustainability and health and well being.” Pacific Foods will become part of Campbell’s Americas Simple Meals and Beverages division, which includes Campbell’s soup, simple meals and shelf-stable beverage units in the US, Canada and Latin America.

industry. The enterprise value is Eur20.5 million. Bob Kunze-Concewitz, chief executive of Gruppo Campari, comments: “With the disposal of the Sancerre winery, which follows the sale of the Italian and the Chilean still wine businesses, finalised over the last year, Gruppo Campari fully exits the still wine business, thus continuing to streamline its non-core activities and increasing its focus on the core spirits business. Since the beginning of 2016 we have divested noncore assets for a total value of approximately Eur117 million.”

Nestlé May Sell US Confectionery Business Nestlé will explore strategic options for its US confectionery business, including a potential sale. The review covers the US market only and is expected to be completed by the end of this year. Nestlé’s US confectionery business had sales of around SFr900 million (Eur827 million) in 2016. It primarily includes popular local chocolate brands such as Butterfinger, BabyRuth, 100Grand, SkinnyCow, Raisinets, Chunky, OhHenry! And SnoCaps, as well as local sugar brands such as SweeTarts, LaffyTaffy, Nerds, FunDip, PixyStix, Gobstopper, BottleCaps, Spree and Runts. It also comprises the international chocolate brand Crunch.

Gruppo Campari Confirms Full Exit From Still Wine Italian drinks group Gruppo Campari has agreed the disposal of the French Château de Sancerre wine business to Maison Ackerman, the wine division of Terrena, a Francebased company with diversified interests in the agriculture

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

Bob Kunze-Concewitz, chief executive of Gruppo Campari.

Pernod Ricard Enters the Mezcal Category Pernod Ricard, through Pernod Ricard USA’s New Brand Ventures division, has agreed to take a majority stake in Del Maguey Single Village Mezcal, the leading producer of artisanal, hand-crafted mezcals and number one mezcal brand in the US. Alexandre Ricard, chairman and chief executive of Pernod Ricard, comments: “We are very impressed by Del Maguey’s successful track record and the high quality of their mezcals. This partnership illustrates our continued strategy of partnering with dynamic entrepreneurs who share our passion for authentic, high-quality crafted premium products and further extends our fantastic portfolio of genuine brands.” Global sales of mezcal rose to a record $80 million in 5

M E E R R G G E E R R S S M 2015, and US volumes jumped 279% from 20052015, according to International Wine & Spirits Research.

Richardson Acquires European Oat Millers to Expand Global Reach Richardson International, Canada's leading agribusiness, has expanded its oat milling business with the acquisition of European Oat Millers. Based in Bedford, England, European Oat Millers is the second largest oat miller in Europe, producing a wide range of oat products, includ-

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ing various oat flakes, flour and groats, as well as wheat and barley flakes and extruded ingredients and products. Products are sold throughout the UK, with exports to continental Europe, Africa, the Middle East and Asia. “We are excited to build on our success in valueadded processing and extend our food manufacturing footprint to a new geography,” says Curt Vossen, president and chief executive of Richardson International. “As the largest oat miller in North America, we now look forward to building a presence in Europe to

enhance our ability to compete in the global marketplace.”

Around Noon Accelerates Growth With Significant London Acquisition Around Noon, the Northern Ireland-based food-to-go manufacturer, has expanded its presence within the UK. The Newry headquartered company, which already has a market-leading position on the island of Ireland, has acquired Chef in a Box, a premium sandwich and snack manufacturer with marketleading customers in the corporate sector. The purchase from Donegal Investment Group will enable Around Noon to initially gain a strong foothold in Greater London and provide a platform for further UK expansion. The food-to-go market in the UK is estimated to be worth over £16 billion, driven

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in part by the rise of littleand-often shopping, and the popularity of coffee culture. Around Noon has been in business for more than 25 years and employs over 300 people. It supplies a broad range of high-quality sandwiches, wraps, salads and fruit pots under its Scribbles brand. It also markets bakery items from its in-house operation, Sweet Things, which it acquired last year, and cold pressed juices.

Gareth Chambers (left), chief executive of Around Noon, and Howard Farquhar, chairman of Around Noon.

I MARKETING

Tetra Pak Index 2017 – The Connected Consumer By Libby Costin, VP Marketing, Tetra Pak n today’s fast-moving, informationIbrands saturated world, food and beverage need to find new ways to

control of brands, being created by consumers themselves. One way brands can establish a engage and build relationships with direct, uninterruptible link with conconnected consumers. That’s the sumers is via the product itself – or message of this year’s Tetra Pak rather the packaging that contains it. Index, the tenth issue of the processEspecially as technology has opened ing and packaging group’s annual up a vast range of possibilities, for report on industry trends. example, every single carton can now As trust in traditional information carry a unique code that can be the sources hits an all-time low, conkey to personalised consumer engagesumers are increasingly looking to ment and two-way communication. their peers for advice and recommenIt can also offer total traceability, dations via blogs and social media. allowing consumers to access inforAnother challenge highlighted by Libby Costin leads Marketing for Tetra Pak. In her role, Libby is mation across all stages of production the report is a shift in the customer responsible for marketing strategy, consumer and industry of the product they hold in their journey. It’s rapidly evolving from a intelligence, category management and portfolio deployment for the hand. relatively linear process to a complex Tetra Pak business globally. She also oversees the development of Mass personalisation, interactive jigsaw puzzle as platforms proliferate, extensive, proprietary research on key beverage categories such as and entertaining packaging, including e-commerce accelerates and ever Dairy, Juice, Still Drinks, Food and Wine, developing a strategy to augmented reality, also offer new more voices reach out to consumers. identify and drive new business opportunities worldwide. opportunities for boosting engageRegardless of where a purchase is ment with consumers – our studies made today, online or in a store, connected consumers search for show they are both eager to be entertained by brands and happy product information before, during and after buying, and look at to pay extra for customised items. multiple information sources – many of which are beyond the Download the free report at tetrapak.com/tetra-pak-index J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

COVER STORY

Carlsberg Group Sets Sail on New Course Carlsberg Group is making steady progress in executing its ‘Funding the Journey’ cost saving and profit improvement programme while implementing its new ‘SAIL 22’ growth strategy, as the Danish brewer strives to consolidate its position in developed markets in Western Europe, improve profitability in Eastern Europe and to expand in emerging markets.

urope’s second largest brewer and ranked fourth worldwide, Carlsberg Group is focused on three global regions Western Europe, Eastern Europe and Asia - where it has strong market positions and its own operations. The rest of the world is supplied through licence agreements or exports. Carlsberg Group has assembled an impressive portfolio of international premium brands - Carlsberg, Tuborg, Kronenbourg 1664, Grimbergen and Somersby cider – supported by a host of local power brands. Carlsberg Group enjoys leading positions (ranked first or second) in 24 beer markets across Europe and Asia, which account for 74% of total volume sales. Western Europe is the brewer’s largest and most lucrative global region, generating 47% of group volumes, 60% of group net revenue and 54% of group net operating profit in 2016.

Carlsberg Group is Europe’s second largest brewer and ranks fourth globally.

Of course, Russia and Ukraine, which is the second largest beer market in Eastern Europe and where Carlsberg Group holds a strong second position, are facing socio-political and economic uncertainties. The resulting weakness in both beer markets is undermining Carlsberg Group’s performance in Eastern Europe and overall. Eastern Europe contributed 25% of group volumes in 2016 and 16% of net revenue.

Cees ‘t Hart, chief executive of Carlsberg Group, has just completed his second year at the helm of the global brewer.

Asia is now Carlsberg Group’s second largest region, having overtaken Eastern Europe in 2015. Asia accounted for 25% of group volumes, 16% of net revenue and 18% of operating profit last year. Asia has been growing in importance during the past decade and Carlsberg Group plans to support continued expansion in the region with particular emphasis on premiumisation and the markets of China, India and Vietnam. In Eastern Europe, Carlsberg Group is the clear leader in Russia, the region’s main beer market, and also leads in Belarus and Azerbaijan. Carlsberg Group has been Russia’s largest brewer since 2008 when it gained full control of Baltika. At that time Baltika controlled almost 40% of the vast Russian beer market and Eastern Europe generated close to half of Carlsberg Group’s total profit. Eastern Europe generated just 18% of group operating profit in 2016.

Carlsberg Group has assembled an impressive portfolio of international premium brands - Carlsberg, Tuborg, Kronenbourg 1664, Grimbergen and Somersby cider – supported by a host of local power brands.

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be reinvested in the business in support of the SAIL’22 priorities. The other half will improve earnings. Funding the Journey delivered benefits of about DKr0.5 billion in 2016. Launched in March 2016, SAIL’22 aims to make the Carlsberg Group a successful, professional and attractive brewer in its markets - successful by delivering sustainable organic topand bottom-line growth; professional by being the preferred supplier of customers; and attractive by delivering value for shareholders, employees and society. SAIL’22 is designed to leverage the brewing group’s vast knowledge base, support a team-based culture and secure a fast implementation. “SAIL’22 defines the key priorities and sets a clear direction for our work in the coming years,” explains Cees ‘t Hart. “Our investments will be allocated to support the successful delivery of the SAIL’22 priorities.” He adds: “With SAIL’22, we have embarked upon a journey to create a business model that generates sustainable organic growth.”

Leadership Cees ‘t Hart, chief executive of Carlsberg Group, has just completed his second year at the helm of the global brewer, having previously been head of Netherlands-based international dairy Steady Progress group Royal FrieslandCampina. After becoming chief executive The ‘Funding the Journey’ cost saving and profit improvement of Royal FrieslandCampina in 2008, Cees ‘t Hart led the inte- programme and the newly introduced ‘SAIL 22’ development gration of two former competitors Friesland Foods and strategy are starting to deliver results. For its 2015 financial year, Campina, developed the ‘route2020’ development strategy and Carlsberg Group reported a net loss of DKr2.6 billion, including re-engineered the business model to deliver sustainable growth and value creation. In this period revenues grew from Eur8.2 billion to Eur11.4 billion, and margins increased significantly in part through the creation of an international supply chain. Royal FrieslandCampina is now one of the most successful dairy companies in the world with operations across Europe, Middle East, Africa and Asia, including a substantial presence in China. Cees ‘t Hart is attempting a similar transformation at Carlsberg Group. Since his arrival at the brewing giant in June 2015, Carlsberg Group has initiated a two-part, multi-year transition strategy. The first part, Funding the Journey, is designed to improve operational efficiency. The second part is SAIL'22, which is the outcome of the strategic review of the business. While Funding the Journey is driving operational effectiveness, SAIL'22 will provide the group with a long-term Western Europe is the brewer’s largest and most lucrative global region, generating 47% of strategic direction designed to create sustainable value. group volumes, 60% of group net revenue and 54% of group net operating profit in 2016. Funding the Journey and SAIL’22 Funding the Journey was launched in late 2015 and encompasses four main areas - value management, supply chain efficiency, operating expense efficiency and right-sizing of businesses. Funding the Journey is expected to deliver net benefits of DKr 1.5-2.0 billion (Eur202-269 million) by 2018, half of which will

Carlsberg Group is focused on three global regions – Western Europe, Eastern Europe and Asia.

restructuring charges, reflecting a continuing decline in its eastern European beer markets. Group beer volumes for the year decreased organically by 4% due to the weak Russian and Ukrainian beer markets and operating profit declined organically by 7% as a strong increase of 13% in Asia was offset by a modest decline of 3% in Western Europe and a fall of 19% in Eastern Europe. Carlsberg Group has since been able to improve its financial performance, with operating profit increasing organically by 5% in 2016 with all three regions – Western Europe, Eastern Europe and Asia - delivering growth. Reported net revenue at DKr62.6 billion (Eur8.4 billion) was up 2% on an organic basis. In addition to advancing its key priorities for 2016 - executing Funding the Journey and announcing and embedding the new SAIL'22 strategy – Carlsberg Group also achieved its three regional priorities for the year. In Western Europe, the operating margin improved by 50 bp to 14.2%, mainly as a result of value management focusing on delivering price/mix and margin improvement. Its Asia region continued to deliver solid organic revenue growth (+4%) as a result of a strong 6% price/mix and despite a negative volume development in China. Organic operating profit growth was 6%. The Eastern Europe business achieved 12% organic operating profit growth and a 60bp improvement in reported operating margin in spite of challenging market conditions and currency headwind.

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brands account for 93% of beer volumes, as well as pursuing a strong position in craft and speciality beer and non-alcoholic beer (NAB), leveraging our strong brands in these segments.” For instance, in crafted beer, Carlsberg Group has just strengthened its portfolio with the acquisition of London Fields Brewery in the UK and will establish a new brewery in Lithuania as it further extends its joint venture with Brooklyn Brewery of New York (see Panel). Carlsberg Group has been recruiting to expand its capabilities in areas such as IT, digital, core beer and NAB. There have been a number of recent changes to the senior management team since 2016 including the appointments of Heine Dalsgaard as chief finance officer; Philip Hodges as executive vice president, Group Supply Chain; Michiel J Herkemij as executive vice president for the Western European region; and Graham Fewkes as executive vice president for the Asia region. Carlsberg Group has also been Carlsberg Group has been Russia’s largest brewer since 2008 when it gained full moving towards a team-based performance culture. control of Baltika. “To use the sailing terminology, we now have the crew on board, the sails have been set, and we have embarked upon Good Year the journey to turn the Carlsberg Group into a company that “2016 was a good year for the Carlsberg Group,” says Cees 't delivers sustainable value growth,” Cees ‘t Hart comments. J Hart. “We’re satisfied with our performance and the delivery of 5% organic growth in operating profit, a solid Carlsberg Group Strengthens its Craft Beer Business in price/mix, strong cash flow and a further Collaboration With Brooklyn Brewery reduction in financial leverage. During the year, we took significant steps to become a more successful company. We launched Carlsberg Group has acquired our new strategy – SAIL’22 – and its priorLondon Fields Brewery, the ities are now well integrated in our plans English craft brewer, and plans to for 2017. In addition, Funding the establish a new brewery in Journey delivered benefits faster than Klaipeda in Lithuania. Both busianticipated for the year.” nesses will be operated as joint 2017 Objectives He elaborates: “In 2017, we’re determined to achieve a substantial proportion of the remaining Funding the Journey benefits, allowing us to grow earnings organically and invest in SAIL’22-related activities to support the future growth of the company.” At regional level, Carlsberg Group plans to improve margins and operating profit in Western Europe, where it is re-engineering its UK operation and currently constructing a new brewery in Hamburg, Germany; to continue top-line and earnings growth in Asia; and grow operating profit organically in Eastern Europe. Based on these priorities, for 2017 Carlsberg Group expects to deliver mid-single-digit percentage organic operating profit growth and financial leverage reduction. Setting Sail “SAIL’22 is about making the Carlsberg Group a more successful, professional and attractive company,” points out Cees ‘t Hart. The world’s fourth largest brewer has started to implement the new strategy on three levels – portfolio, capabilities and culture. “We are addressing the portfolio by intensifying the focus on core beer, recognising that our strong, mostly local power

ventures with Brooklyn Brewery of New York, the leading US craft brewer. London Fields Brewery, which was founded in 2011, came to prominence through its range of craft beers including Craft Lager, Easy IPA and Shoreditch Triangle IPA. Its craft beer range will become part of the Danish brewer’s core portfolio in the UK and will also form part of its House of Beers range, which caters for premium venues across London and other major cities, and which already includes the Brooklyn Brewery craft beer portfolio. The Carlsberg Group and Brooklyn Brewery are also collaborating to establish a new brewery at the site of the Svyturys Brewery, part of Carlsberg Group in Lithuania. Carlsberg Group’s brewers will collaborate with those from Brooklyn Brewery to create a range of small batch classic and experimental beers. The new range is scheduled to launch at the end of this year, following completion of the construction of the new Svyturys Brewery building. The joint venture in Lithuania is the first investment by Brooklyn Brewery in Eastern Europe and represents its latest collaboration with the Carlsberg Group. In addition to the London joint venture, Carlsberg Group and Brooklyn Brewery recently launched HK YAU - a new beer brand exclusive to Hong Kong. Carlsberg Group and Brooklyn Brewery have also operated the EC Dahls brewery in Trondheim, Norway since 2016 and the New Carnegie Brewery in Stockholm, Sweden since 2012. Carlsberg Group also distributes Brooklyn Brewery’s products in many of the markets in which it operates.

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I SUSTAINABILITY

Carlsberg Group to Achieve Zero Carbon Emissions at its Breweries by 2030 Carlsberg Group has committed to eliminating carbon emissions and halving water usage at its breweries by 2030 as part of its new sustainability programme – ‘Together Towards ZERO’. n intermediate step includes the exclusive use of renewable electricity at its breweries by 2022. ‘Together Towards ZERO’ is a response to increasing consumer demand for sustainable products in a time of global challenges such as climate change, water scarcity and public health issues.

nesses need to take action. The Carlsberg Group has worked with Carbon Trust, the independent not-for-profit expert, to set science-based targets for emission reductions at a level that would contribute to limiting global warming to 1.5 C, the higher level of ambition contained within the Paris Agreement. Carlsberg Group is targeting ZERO carbon emissions at its breweries by 2030 and 100% use of renewable electricity at its breweries by 2022. Through the Carlsberg Circular Community, the Carlsberg Group is also engaging partners along the value chain to reduce beer-in-hand emissions by 30% by 2030.

ZERO Water Waste Today, there are too many areas of the world in which water is not being managed optimally, and water scarcity is a major concern. Working with experts from WWF, Carlsberg Group has Carlsberg Group has committed to eliminating carbon emissions identified breweries situated in and halving water usage at its breweries by 2030. areas with a high-risk of water scarcity and developed targets to The programme is an integral part of the support the ambition of ZERO water Carlsberg Group’s SAIL’22 strategy and waste. consists of four major ambitions – ZERO The new targets include halving brewery carbon footprint, ZERO water waste, water usage by 2030 and working with ZERO irresponsible drinking and a ZERO partners to improve water management in accidents culture – each with individual high-risk areas around selected and measurable targets. breweries. ‘Together Towards ZERO’ has been developed in partnership with leading glob- ZERO Irresponsible Drinking al experts using a science-based approach. It The misuse of alcohol and irresponis aligned with the UN Sustainable sible behaviour such as drink driving Development Goals and sets out to deliver and underage drinking must be preemission reductions that go beyond the vented. It is often the result of a base level of ambition set out in the Paris complex combination of societal and individual factors, and Carlsberg Agreement on climate change. Group is working with a committee of international health and behavZERO Carbon Footprint Climate change is one of the world’s most ioural scientific experts to define pressing issues and, as recognised in the actions that support consumers in Paris Agreement on climate change, busi- making healthy, responsible choices.

The new targets include offering 100% distribution of alcohol-free beer by 2022 to expand consumer choice, providing responsible drinking messaging and nutritional information online as well as on packaging, and forming partnerships to encourage responsible consumption. ZERO Accidents Culture Work-related accidents are unacceptable, and employee health and safety always comes first. Carlsberg Group is working across its organisation, from production to sales and admin, to prevent accidents and build a ZERO accidents culture. The new targets include a year-on-year reduction in the accident rate in order to achieve the ambition of ZERO accidents. The ambitions and actions are driven by the Carlsberg Group’s purpose of ‘brewing for a better today and tomorrow’, and the group will continue to work together with leading global experts to achieve the bold targets. Building on its strong scientific foundation, the Danish brewing group will establish a community of young scientists led by the Carlsberg Research Laboratory – home to ground-breaking discoveries such as the pH scale, purified yeast and climate-tolerant crops. The Carlsberg Young Scientists’ Community will help foster further scientific developments within CO2, water and sustainable brewing – to the benefit of the group and wider society.

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

Global Challenges Cees 't Hart, chief executive of the Carlsberg Group, comments: “Global challenges such as climate change and water scarcity require strong collective action, and with ‘Together Towards ZERO’ we’re setting new industry standards for sciencebased and partnership-driven sustainability as part of our SAIL’22 strategy. We’re committed to delivering zero carbon emissions and halving water usage at our breweries by 2030. As a first action, we’ll switch to 100% renewable electricity by 2022 and cooperate with partners to protect shared water resources in selected water-scarce areas. I'm certain that in achieving our targets we'll create efficiency improvements,

risk reduction and a more resilient business that exists in harmony with local communities and the environment.” He adds: “Our clear targets and ambitions reflect the mentality of our founders to always strive for perfection and contribute to society through science. The world needs leadership, which is why we've made it a top priority to improve the world of tomorrow in support of the UN Sustainable Development Goals.” Tom Delay, chief executive of the Carbon Trust, says: “Just getting better is no longer good enough. Carlsberg’s ambitions go above and beyond the levels of carbon reduction that science tells us are necessary to keep global warming below 2 degrees Celsius. Carlsberg has taken a genuine leadership position on some of the most critical environmental issues the world currently faces, by developing an ambitious long-term business strategy

that focuses on delivering a sustainable future.” Jochem Verberne, global partnerships director at WWF International, says: “WWF and the Carlsberg Group jointly analysed the water risks in their operations and the group’s existing water strategy. We are delighted that Carlsberg has set an ambitious direction for other companies to follow as a result of this. It recognises that responsible water management requires technological breakthroughs at brewery level as well as collaboration with other stakeholders in high-risk catchment areas to secure long-term water availability for people, planet and businesses.” J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I BREWING

Carlsberg Rapidly Harvests the Benefits of Newly Acquired Breweries arlsberg Group is going for leadership C in Asia with currently 43 breweries. Easy roll out of best practice business processes with the brewery management solution Drink-IT is accelerating ROI of the brewing giant’s acquisitions. Ambitious Expansion Strategy Like many other organisations that pursue an international acquisition strategy, Carlsberg faced the challenges of how to provide HQ with critical business insight, and how they could obtain synergy efficiency across the breweries with best practice processes. Intelligent IT is the Tipping Point Carlsberg knew that the road to accelerated expansion goes through the ability to connect new companies with the head office and ensure efficiency through unified best practice processes. Intelligent use of IT was

key. However, relying on the many different systems of the subsidiaries was not an option. Neither was a complex rollout of the group software SAP. Carlsberg chose to introduce a brewery management solution system for all subsidiaries that also worked smoothly with SAP – Drink-IT. Drink-IT - A Backbone For the Entire Business By investing in Drink-IT, Carlsberg has ensured swift rollout of lean and userfriendly, best practice and transparent business processes across its head office and currently 43 Asian breweries. Drink-IT has boosted Carlsberg´s ability

to get their subsidiaries up and running in a fast and efficient manner, while at the same time streamlining the subsidiaries´ processes across their entire value chain. In addition, easy access to management information has led to faster and more accurate decisions, enabling easy benchmarking and follow-up on KPI’s. “There is no getting around the fact that investing in Drink-IT has been a great success for Carlsberg,” says Torben Melskens, Strategy Director of Carlsberg IT. J

About Drink-IT Drink-IT is a complete brewery management solution covering a brewery´s entire value chain and addressing the unique challenges of a brewery. Drink-IT powers some of the world´s best run breweries. Read more here: www.drink-it.com.

Packaging Solutions From Petainer etainer is working closely with Carlsberg P across a range of packaging products. The Carlsberg draughtMaster preform has been developed in partnership with Carlsberg and the two companies continue to work together to innovate and develop this product as part of Carlsberg’s SAIL22 initiative. As a result, Carlsberg is in the process of ‘rolling out’ draughtMaster across existing and new territories. As the draught business develops globally, Petainer also sees Carlsberg, Baltika in Russia, selecting petainerKeg™ in areas where PET one-way kegs are meeting a number of key objectives: no return logistics costs, carbon footprint improvement

and the opportunity to increase the ontrade business for Carlsberg. In 2016, Carlsberg awarded Petainer the opportunity to supply a significant number of SKU’s in the petainerSmallContainer™ segment in recognition of its joint focus on quality and innovation. Petainer now supplies 0.5L to 2.0L bottles and preforms across the range. As the Carlsberg business develops, it is important that the supply chain supports the business objectives. Petainer is well positioned to innovate and support the demands in PET packaging across the relevant territories in line with Carlsberg’s SAIL22 objectives. J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I BEVERAGES

Health Conscious Consumers Reshaping the Beverages Market The European and international beverage industry is having to adapt rapidly as consumers generally are becoming increasingly health conscious and environmentally aware, and are showing a greater interest in how drinks are produced and what they contain. onsumer concerns about sugar, artificial ingredients and calorific content, coupled with a desire for a healthier lifestyle, are driving demand for ’better for you’ soft drinks. Soft drinks producers are responding by reformulating with non-sugar alternatives while continuing to downsize can and bottle sizes. The growing consumer demand for convenient, natural, healthy and refreshing drinks is benefiting the bottled water market. However, the environmental impact of packaged water producers is coming under increasing scrutiny. Consequently, producers are reassessing the packaging materials being used to shift to lightweighting and improved recyclability and some of the major players are seeking renewable sources of packaging. Global sales of alternative waters are growing rapidly – up by 21% in 2016 – with the market expected to double in size to reach US$5.4 billion by 2020, according to Zenith Global, the leading food and drink consultancy. Coconut water currently dominates the sector. The global market for dairy alternative drinks is also expanding at pace and is projected to reach US$16.3 billion in 2018, up dramatically from US$7.4 billion in 2010, according to Innova Market Insights. Interest is being fuelled chiefly by consumers increasingly looking for lactose-free, dairy-free and plant-based/vegan options as healthy lifestyle choices, rather than regarding them as simply for those with allergies or intolerances. The category is also benefiting from the growing availability and promotion of plant-based options to traditional dairy lines, particularly beverages, but also cultured products such as yogurt, frozen desserts and ice cream, creamers and cheese.

Alcoholic Beverages Within brewing, the craft beer revolution continues to spread across more countries globally. Although the US remains the largest craft beer producer, the UK now operates the most craft breweries per capita with 25 breweries per million people,

Heineken has launched its latest innovation -

This trend presents a significant opportunity for low-alcohol and alcohol-free beers, ciders and wines. For example, a third (32%) of British consumers have reduced or limited their alcohol intake over the past 12 months, and lower-alcohol beer, cider or wine is drunk by around one quarter (23%) of alcohol drinkers in the UK, while 14% drink nonalcoholic or alcohol-free beer, cider or wine, according to the latest research from Mintel.

Heineken 0.0 - a non-alcoholic lager (See Panel).

against 15 and 16 respectively in the US and Germany. The top 10 craft beer-producing countries are the US, the UK, Germany, Italy, Spain, France, Canada, the Netherlands, Switzerland and Australia. Similarly, spirit drinkers are also becoming more experimental and willing to try new varieties, presenting craft distillers with new opportunities to diversify their product portfolios. This can be done by adding unique ingredients, trying unusual ingredient combinations, and using innovative processes, according to research and consulting firm GlobalData. Despite the growing appetite for craft beer, overall beer consumption remains in slight decline. As well as showing a willingness to try new types of beer, consumers are becoming more health conscious and are reducing their alcohol intake.

Low and No Alcohol Beer Heineken is targeting the expanding zero alcohol segment and has just launched Heineken 0.0 - a non-alcoholic lager (see Panel). AB InBev expects 20% of its total global beer volume will be generated by noalcohol or low-alcohol products by the end of 2025, compared with 6% currently. Meanwhile, Carlsberg is aiming to offer 100% distribution of alcohol-free beer by 2020 to expand consumer choice while providing responsible drinking messaging and nutrition information online as well as on packaging, and forming partnerships to encourage responsibly consumption. Indeed, brewers are responding to consumer concern over what they are drinking by updating their labels and online information platforms. By the end of 2017, over half of the beer brewed in the EU will carry ingredients and nutrition information. J

Heineken 0.0 Zero Alcohol Lager Introduced Heineken has launched its latest innovation – Heineken 0.0 – a non-alcoholic lager brewed with a unique recipe for a distinct balanced taste – and only 69 calories per 33cl bottle. Initially available in 14 markets in 2017, the brand’s iconic green label has been turned blue – the colour associated with the alcohol free category. Gianluca Di Tondo, senior director Global Heineken Brand, comments: “As pioneering brewers, we are committed to introducing new and innovative products to meet consumer needs. The zero alcohol segment in Europe and Russia grew with a 5% CAGR between 2010 to 2015. We expect this strong growth to continue, driven by good innovation on taste, as it already has in Spain, Germany and Austria. Our ambition is to lead the category development in the markets where non-alcoholic beer is still small, but has growth potential, with a premium proposiGianluca Di Tondo, senior tion.” director Global Heineken Heineken 0.0 gives consumers choice for a variety of drinking occa- Brand. sions. It also contributes to the growing cultural trend around the importance of responsible alcohol consumption and living a balanced, healthy lifestyle.

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I BEVERAGES

Non-alcoholic Brewing – New Technologies and Big Opportunities By John Kyle Dorton, Vice President, Brewery Systems, Alfa Laval he ways our society views alcohol and alcohol consumption are T in flux – big time. Consumer tastes and worldwide market configurations are more fluid and less predictable than ever before. New generations of beer drinkers and new consumer groupings are often also becoming more health focused, resulting in important new consumer narratives in many relatively affluent societies and upwardly mobile social groups. As a result, there is a steady, substantial and global move towards beers featuring less alcohol – or none at all. Some brewery experts reckon that by 2020 as much as 20% of all the beer sold will fall into the so-called ‘healthy’ category. For ‘healthy’, read ‘with alcohol content removed’. But what about all the surplus alcohol? Condensate Decisions

There is no getting away from the fact that brewing is a fermentation-based process that produces ethanol. Removing alcohol from beer – normally using some appropriate kind of stripping or filtration technology – always results in an alcohol concentrate of varying strengths. If you want to strip out the alcohol, there has to be a solid plan – commercially viable and environmentally sound – for what to do with it. Generally speaking, there are three main approaches to putting this ethanol condensate to good commercial use. 1 Adding Value

A condensate featuring approximately 20–30% alcohol by volume can be used as an ingredient in a wide range of modern hybrid products such as ready-to-drink cocktails, flavoured beer-based drinks and even beer vodka. In this kind of setup, the previously ‘surplus’ alcohol plays a key role in adding customer-centric value, with considerable leeway for flavour management. 2 On-site Source of Fuel

A condensate with an alcohol-by-volume content above 60% is ideal for use as on-site fuel to meet some of the brewery’s steam requirements (typically in a co-generation plant using high-performance mixed-fuel boiler technology). This approach helps roll back a brewery’s direct operating costs, as well as improving environmental footprints. 3 Off-site Fuel Product

It is also possible to refine the condensate to an alcohol-by-volume specification of above 90%. As a by-product of de-alcoholization, this refined ethanol is ideal for use as fuel for suitably equipped internal-combustion vehicles – although this is only a realistic proposition in certain markets.

Alfa Laval De-alcoholization Module.

deal with new aspects of this growing demand for non-alcohol beers. Adjusting taste, flavour and aromas further downstream – after the alcohol component has been removed – requires working with other technologies and requires significant adjustments and rethinks to the way we in the brewery industry apply our craftsmanship, technology and marketing skills. Applied Technology

Here at Alfa Laval, for example, we have developed a specially designed, all-in-one de-alcoholization module (see illustration) as an innovative combination of well-proven technologies, including beer degassing, culinary steam generation, vacuum stripping and alcohol condensing. These work in series as a well-integrated system, based on single-pass column stripping at low temperature and pressure. This makes it easy to simply add non-alcoholic brewing to any existing production facility, with no need for big capital investments. The company is also actively exploring ways to maximize alternative uses of stripped ethanol, for example as a key ingredient using blending technologies to fashion complementary alcoholic products and as a fuel source in boiler systems. Decisions and Choice

Shifting the Emphasis

These are just a few examples of how traditional brewing processes and specialist skills, with a heavy focus on producing good flavours and tastes via (for example) the experienced management of yeast cultures and malt types, do not make it easy to

In just a few years, the once-niche market of non-alcoholic brewing will have made significant inroads into the mainstream market. This will give rise to important choices and challenges with respect to flavour, technology capabilities and cost-effectiveness throughout the brewing process. J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I BEVERAGES

A Record Line-up For Drinktec 2017 Around 1,600 exhibitors are expected to take part in the ‘World´s Leading Trade Fair for the Beverage and Liquid Food Industry’, taking place from September 11 to 15, 2017 in Munich. With the integration of SIMEI, the world´s leading international trade fair for winemaking and bottling technology, total hall space taken up by drinktec rises to over 150,000 square meters. rinktec is the world´s leading trade fair for the beverage and liqD uid food industry, and as such it is the biggest global gathering of this sector—a kind of world summit. From small, family-owned firms to global players, anyone who has anything to say in the sec-

tor is putting on a presentation at drinktec 2017. The exhibitors represent the entire process chain: from the manufacture, filling and packaging of beverages and liquid food through to marketing—raw materials, beverage ingredients and logistics solutions included. Specifically drinktec 2017 encompasses the following main exhibition sections: process technology; containers/packing materials; filling and packaging technology; raw materials/ingredients; process automation; energy systems; PET technology; restaurant and catering supplies and equipment; sales promotion and marketing.

ponent in drinktec (see also the press release on this dated August 6, 2015). Organized by the Unione Italiana Vini (UIV), “SIMEI@drinktec” will have its own dedicated area in Halls C2 and C3. The spectrum of products and technologies on show at drinktec is therefore now expanded to include all areas of wine technology. This creates a globally unique platform for the international wine industry, covering not only the wine business, but also enabling visitors to look beyond their own particular field, and experience what´s new in other segments, such as the beer industry. For the exhibitors at drinktec, around 60 percent of whom also offer solutions for the wine industry, SIMEI is a chance to reach even more potential customers. And in return, the exhibitors in SIMEI@drinktec can present their offerings to a global trade audience. SIMEI retains its two-year cycle, but its venue will alternate in future between Italy and Munich. Oils+fats – Home&Craft Hall C1 at drinktec is shared with oils+fats, Europe´s only specialist trade fair for the oils and fats industry. Here, fifty exhibitors will be presenting their systems, components and auxiliary materials for the production and processing of edible oils, fats and lubricants—along with raw materials and quality control solutions. Also in Hall C1 is a new exhibition section called “Home&Craft”, which features technology and products for home brewing and microbrewing. Rounding off the displays in Hall C1 is a range of product-specific and cross-industry process technology for the beverage and liquid food industry. PRO FachHANDEL Taking place for the first time as part of drinktec 2017 is PRO

Innovations Showcase and Spectacular Displays Drinktec is regarded as a platform for innovations. The latest solutions and entire systems are presented in Munich for the first time—and this is a unique selling point of drinktec. This trade fair is renowned for the spectacular displays put on by its exhibitors at their booths. Nothing is too much trouble for them when it comes to making a big impression with the global trade audience. For example, entire filling and packaging lines of all kinds (from low-tech to high-tech) are set up in the halls, bottles run past on conveyor belts, innovative PET bottles are produced live—just like in a real industrial set-up. And all of this is on view and in operation for trade visitors on all five days of the fair. SIMEI@drinktec In 2017, for the first time, SIMEI will be an integrated comFOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

FachHANDEL, the leading trade fair for the German specialist trade in beverages and convenience products. PRO FachHANDEL will take up Hall B0 and the foyer of the ICM – Internationales Congress Center München, which is adjacent to the Messe München exhibition center. This trade exhibition is an opportunity for international beverage manufacturers attending drinktec as visitors to find the right trading partners for their entry into the German market. As such PRO FachHANDEL is an ideal enhancement to the offering at drinktec. Over 70,000 Trade Visitors More than 70,000 trade visitors from all over the world and from all areas of the beverages industry will be coming to drinktec 2017. Around two-thirds of the visitors come from outside Germany. drinktec addresses the entire industry: trade professionals from the soft drinks and fruit juice industry, from brewing, from mineral water producers, dairies, the wine and sparkling wine segment, from the spirits industry, and from beverages wholesale and retail businesses. Employees from manufacturing and production make up the biggest proportion of visitors, closely followed by plant managers and CEOs. Representatives from marketing and sales have also discovered the attractions of drinktec and come along to learn about all the latest developments and trends. In 2013 this group of visitors numbered 12,000, and in 2017 that figure is expected to rise. Key Themes The key themes at drinktec 2017, which are covered in all the exhibition halls and affect almost all sections, are: energy and resource efficiency, water and energy management, hygiene and product safety and process optimization/flexibility. Highlights from the supporting program are detailed below. • Special Area New Beverage Concepts, Hall B1: In a special exhibition area in Hall B1 manufacturers of sweeteners, colorants, ingredients, additives and flavorings, treatment agents and recipes will be presenting their new products and solutions. The “Special Area” has an open and interactive design. Product developers, brand managers as well as marketers and buyers will be able to try out new ingredients and beverage concepts at the bar, and also search the flavor providers for new ideas. • Innovation Flow Lounge (IFL): Following its highly successful premiere in 2013, the IFL will be continued in 2017, but with a new concept: High-caliber experts will discuss the topical themes of importance for the future of the industry in the areas of product innovation, packaging and marketing. IFL and the Special Area New Beverage Concepts will have a joint space at the show, so that topics from the area of new beverage concepts,

such as beverage ingredients and ideas, are also addressed and dealt with in the IFL. The IFL is targeted at product, brand and innovation managers, as well as decision-makers and managers in the fields of marketing and sales. Thanks to the interactive concept with various action modules, exchange and networking are always in the foreground, for example also at the Beverage Innovation Bar. • drinktec Forum: The Forum in Hall A2 is dedicated on all five days of the fair to key issues affecting the future of the sector. Independent experts from research and industry will be giving answers and presenting pioneering approaches and practical solutions. The focus is on themes to do with technology, production processes and automation. In cooperation with the Zentralverband Deutscher Milchwirtschaftler (German Dairy Professionals Association) the last day of the fair is dedicated to the theme of milk. There will be simultaneous interpretation (German-English) of all the lectures. Also in the Forum, on the Monday, is the careers day for the beverage professionals of tomorrow: young_talents@drinktec. • place2beer: This is the further development of the Brewers’ Meeting Place, which celebrated its successful premiere at drinktec 2013. At drinktec 2017 the place2beer in Hall B1 is sure to be a big magnet for brewers, beer lovers and all those who have anything to do with beer. And there will be plenty on offer for them here: Beer lovers can taste, free of charge, beers from all over the world and find out about the latest qualities in hops, malt and yeast, while inspecting or trying out the products for themselves. Successful brewers will tell their stories and present their beers at a live tasting. And start-ups will be presenting their innovative ideas to the international trade audience for the first time. In addition, William Reed Business Media will be organizing lectures and panel discussions on themes such as food and beer, women and beer, popular styles of beer, packaging and branding, and lots more. • Competitions and award ceremonies: drinktec 2017 also features many competitions and award ceremonies. On the day before the start of the show, the World Championships for Beer Sommeliers will take place. The organizer is the Doemens. Also, the best beers from all over the world will be fighting it out for the title of “European Beer Star”, a competition organized by Private Brauereien Bayern (an organization of private breweries in Bavaria) and being held at drinktec for the second time. Also presented at drinktec are the “Beverage Innovation Awards” for creative and innovative ideas. For further information on the supporting program visit www.drinktec.com/Rahmenprogramm. For general information on drinktec visit www.drinktec.com. J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I DRINKTEC 2017

The Global Beer Market Continues to Surprise Drinktec 2017, the ‘World´s Leading Trade Fair for the Beverage and Liquid Food Industry’, continues to be a very important international event for the brewing sector. etween September 11 and 15, 2017, all those involved in the B production of beer will be coming together at the Messe München exhibition centre, where they will find all they need to produce excellent beer. Currently the global thirst for beer is declining. For the first time brewers worldwide saw the market fall in two successive years - in 2014 by 0.5% and in 2015 by 1.5%. The main reasons for this are

thought to be the difficult general economic conditions and increasing political unrest. The world beer market is now strongly consolidated. According to Statista, the five biggest brewing groups accounted for just over half of all beer sales, a market that stands at 1.93 billion hectolitres. It will become even more important for each individual brewery to be able to produce efficiently and flexibly. For that, they need the right technology, energy-saving brewing processes, plus continuous investment in the business, in line with the motto ‘A brewery that stops building, will soon stop brewing.’

terms of size. Small and medium-sized breweries are generally well placed to find their niche and to fill it. The ever stronger craft beer wave is advancing across almost all continents. In Europe, Asia and Australia lots of small breweries are starting up. In the US, the ‘mother land’ of the craft brewing movement, the market in craft brewing increased by almost 13% (in sales) and 16% (in revenue) in 2015, according to the Brewers Association, this against the background of an overall market that was stagnating. These small breweries now account for over 12% of the second-largest beer market worldwide. Thanks to craft beer, new dynamism is being injected into hop markets worldwide, which have suffered years of standstill. Years ago US-American hop farmers had started to grow new varieties of hop, and craft brewers experimented with different taste nuances. Now other regions are following suit. For example, the Hallertau region in Bavaria is producing new German varieties with highly aromatic nuances. Turbulent Asia-Pacific Region In the Asia-Pacific Region the market for beer has been very turbulent in recent years. Slightly lower growth, high competitive pressure and the increasing presence of foreign breweries on the one hand, and the increased popularity of craft beer breweries, higher spending power and generally consumption-oriented consumer behavior on the other will continue to influence the market in future. AsiaBriefing is expecting that the beer market in Asia-Pacific in 2020 will reach a volume of US$220 billion - an immense figure. The Chinese beer market has been the biggest in the world

Drinktec – Solutions For the brewing sector drinktec 2017 offers everything that is needed for producing and marketing beer. Overall around 80% of the drinktec exhibitors are offering solutions and technology for the brewing world. The exhibitors will be showcasing product-specific process technology for beer from the brewhouse via filtration through to the necessary analytical equipment in Hall B2. Raw materials from malthouses and from hop suppliers are presented in Hall B1 and restaurant and catering supplies as well as dispensing systems are on show in Hall A1. There is a new section called Home & Craft in Hall C1, where small-scale and amateur brewers can find the right equipment. Craft Beer Of course in the brewing industry not everything is measured in 28

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

• The European Beer Star will also be awarded at drinktec—on September 13. This competition picks out the best beers from all over the world, and it is regarded as one of the most important international beer competitions. • The place2beer with beer tastings, success stories and a mix of lectures on diverse themes will be a popular gathering place for brewers, beer lovers and all those involved in the world of beer. Hall B1 is the place to be for start-ups, SMEs and craft brewers. • The Microbrew Symposium on the first day of the show is directed at the special-beer and craft beer movement. The themes focus primarily on technology and quality aspects of professional craft beer brewing. • The very well received Innovation Flow Lounge will be continued at drinktec 2017, but with a new concept - it will share a communication platform and bar space with the Special Area New Beverage Concepts in Hall B1, which will give rise to synergies. J since 2002 in terms of production and overall consumption. China has for many years been a very fragmented, heterogeneous market. The golden years with sometimes double-digit growth rates seem for now to be over, following a noticeable tailing off in 2014 and 2015. However: “It´s too early for a swan song,” says Meik Forell from corporate consultants Forell&Tebroke in an analysis of the Chinese beer market. Hopeful Signs There are also hopeful signs. Germany´s engineering federation, the VDMA, is predicting annual growth in the entire beverages industry in the Asia-Pacific Region to be 4.6%. 2016 was the first year in the 13th Five Year Plan in China. The aim with this plan is to facilitate economic change, encourage consumption and strengthen innovations. The two new concepts of ‘Industry 4.0’ and ‘Made in China 2025’ are providing the basis for new, smart ideas for the beverages industry. Vietnam, too, is turning into a growth market for beer in the Asia-Pacific Region. The country is now the biggest beer consumer in the ASEAN Region and the thirdlargest in Asia, after China and Japan. India is primarily a market for spirits, but beer consumption is slowly rising. In particular high-priced beers are in demand. For the beer market in India, analysts from TechNavio are forecasting an annual growth in volumes of around 15% up until 2018. According to Euromonitor International imports of premium beer will rise by 11% per year through until 2018. Drinktec—Supporting Program For Brewers As well as the broad spectrum of products and services on show at the exhibitors booths, drinktec 2017 in Munich has a whole lot more to offer brewers: • For example, the world championships for beer sommeliers, which takes place every two years. In 2017 the date will be 10 September, one day before the start of drinktec.

I DRINKETC 2017 PREVIEWS

Packo Produces Centrifugal Pump Equivalent to More than 6.8 Million Bottles of Beer Per Hour! acko Pumps has just successfully proP duced and tested its biggest pump ever. This colossus, which is an extension of the

MCP3/250-315 with 200 kW motor.

current MCP3 & MFP3 range, weighs 1.6 ton, has a flow of 1200 m3/h and is driven by a motor of 200 kW. The production was made possible thanks to the expansion of the test bank. Packo is now able to produce pumps with flow rates up to 1700 m3/h at a maximum power of 250 kW. Packo is now the only player on the market that can offer a pump with such a large flow in a hygienic execution. One more fact about the pump to finish off. The average beer bottle contains 25cl beer. If we extend this fact to the pump of 1700 m3/h, we can state that the pump is capable of pumping 6.8 million bottles of

Cut-away model of the hygienic pump series MFP3.

beer per hour! Feeling thirsty? Meet Packo Pumps on Stand B3-234 at Drinktec. J

How SSI Schaefer is Reinventing the Efficiency of Intralogistics Operations SI Schaefer, the global leader in intralogistics, will showcase its S modular and scalable system solutions for the internal material flow in the beverage industry at the drinktec 2017 trade fair (stand 508, hall 1). The focus will be on presenting industry-specific concepts from the system provider and holding personal consultations with trade fair visitors to develop tailored solutions. ECommerce and green logistics, time to deliver, workplace ergonomics, and traceability – these are the main logistics challenges facing the beverage industry. The logistics supplier is perfectly equipped to meet the increasingly complex needs of its customers thanks to its consistent focus on customer- and market requirements and the strengthening of its IT capabilities. SSI Schaefer develops customer-focused complete solutions based on global project expertise, wide-ranging competencies, and long-standing experience in the food & beverage market sector. The Schäfer Lift& Run System from SSI SCHAEFER is an economical solution for highly dynamic pallet handling in channel storage systems.

The modular concept of 3D Matrix Solution provides highly dynamic system solutions for storing and picking individual articles, cartons, layered trays and pallets.

Innovative Solutions – Flexible and Scalable The optimum interaction of components, for example when picking drinks pallets, is essential in order to perform complex order consolidations automatically and reliably. SSI Schaefer implements cost-effective solutions for the sector with its wide range of products and services: At the drinktec exhibition, visitors will have the opportunity to learn more about the patented 3D-Matrix Solution®, the versatile Schäfer Case Picking System, the scalable Schäfer Lift & Run System, and the powerful Automated Case Picking. The company's experts will be on hand to provide customers with tailored, industry-specific, and solution-oriented advice. Visit SSI Schaefer at drinktec and request your personal entry voucher now: http://lets-talk.ssi-schaefer.com/drinktec/en. J

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I DRINKTEC 2017 PREVIEWS

GEA Provides Inspiration For Beverage Industry at Drinktec 2017 GEA invites beverage industry representatives to visit Hall A3, Booth 313, at drinktec, the leading global trade fair for the beverage and liquid food industry in Munich from September 11-15, 2017. his year the technology comT pany will present innovations and developments under the

nization systems from GEA is being opened with the market launch of the GEA Ariete Homogenizer 5400: It provides throughput of 80,000 liters an hour with 120 bar of pressure creating the largest capacity a five-piston homogenizer has ever provided, setting new standards in terms of reliability, product safety and operating costs.

motto "Inspiring Beverage Solutions": Covering everything from fruit juice, milk, wine and beer production, GEA uses project-based and standard solutions to help customers prepare for the future. GEA focuses on customer needs, including high quality products providing absolutely reliable and safe production, flexGEA ABF Technology ibility in the face of demand fluc(Aseptic Blow Fill) For tuations, improvements to interSustainable Beverage nal productivity with ever lower Bottling operating costs and a sustainable The GEA Ariete Homogenizer 5400 is the world’s highest capacity At the drinktec GEA will also preecological balance. Tailoring its homogenizer, being able to process 80,000 liters per hour at 120 bar. (Photo: sent GEA ABF, composed of an engineering know-how to the ser- GEA). aseptic rotary blow molding vice of its customers, technology machine with an integrated aseptic leader GEA develops solutions filling and aseptic capping systems beyond mere components, accompanying elements of a semi-continuous process vari- featuring maximum efficiency for processthe whole line life cycle. These three GEA ant and the advantages and challenges facing sensitive beverages into PET bottles. innovations premiere at the fair. ing beer production. The aseptic blow molding process reduces the use of chemicals and energy consumpContinuous Brewing, Just-in-time Launch of Highest Performance tions for sterilizing operations. Innovation Production Technology and High-pressure Homogenizer in the GEA Sterilfoil VHP L is a new flexible soluDigitalization – ‘Brewery 4.0’ World tion for foil sterilization available for a wide GEA puts strong focus on the future of beer A new chapter in high-pressure homoge- range of applications from ESL to aseptic production with the release of its “Brewery 4.0”: This concept is a vision of continuous brewing and fermentation, placing strong demands on tomorrow's technology and IT infrastructure. Another pioneering feature is the linking of beer production – the continuous mash separation in double decanters, fermentation and maturation processes as well as quality assurance – with just-in-time production technology and flexible processing of digital data. Large quantities of data are processed as these production steps are digitalized and allow for analysis of midand long-term trends, increasing the system availability. Customers can thus use Brewery 4.0 to prepare for competition in the coming years and generate the greatest possible flexibility throughout the supply chain. Simultaneously GEA takes into account sustainability with regard to yields, energy consumption and space usage of the plants. At drinktec 2017, GEA will meet At drinktec GEA presents ‘Brewery 4.0’, its vision of tomorrow’s brewing technology. It pioneers in linking with industry representatives to discuss the continuous brewing and fermentation, just-in-time production industry and digitalization. (Fig: GEA). FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

beverages. Both technologies use a very effective vapor H2O2 based treatment, able to reach over 6 log reductions on both preform or foil decontamination and suitable for High Acid or Low Acid products. Some of the other GEA exhibits at the drinktec are detailed below. Flexibility, Efficiency and Quality For Craft-beer Brewers GEA shows two solutions for the mediumsized specialty breweries such as those on the craft-beer market: The three-vessel GEA CRAFT-STAR™ brewhouse has excellent extract efficiency of 98 percent and helps the customer consistently create prize-winning beers. TheGEA ‘Plug & Win’ separatorfor craft brewers is a multi-functional compact system, performing five processes in a single machine – a benefit in terms of profitability and efficiency. The separator skid reduces the production time by 30 percent while generating up to ten percent higher yields. Combined GEA Innovations Improve Predictability of Beer Production GEA experts have conceived, designed and installed individual components and entire systems for breweries around the world. Their field experience, intense development work within the Group and close cooperation with customers allow them to question the status quo, move forward and set standards for the industry. GEA is also formulating their understanding of today's stateof-the-art technology under the title "Brewery Advanced". The concept is based on GEA's sophisticated technology and a process design, creating significant advantages when it comes to customer capacity and energy consumption. GEA is thus able to increase the number of brews in the lauter tun from 12 to 14 a day, while the evaporation rate has been reduced from the standard four percent to merely one percent. The GEA stand will also display their

GEA’s Aseptic Blow Fill (ABF) solution, equipped with an H2O2 sterilization system for aluminum foil closure and suitable for high and low acid drinks, offers a safe, flexible and aseptic way to fill plastic bottles. New GEA Sterilfoil VHP L is developed for foil sterilization (Photo: GEA).

efficient evaporation technology, the wastefree GEA clearamic BeerFiltration as well the ECO-MATRIX™ piping concept and ECO-FERM™, a technology for homogenizing fermentation tank contents. Golden Sealing At drinktec GEA TEFASEP® gold debuts as part of the GEA D-tec® valve line. The hard and inert material compound together with the valve seat seal design allows for a minimized contact area between housing and seal and therewith increases cleanability and process safety. TEFASEP® gold belongs to the D-tec® stem diaphragm valves which are characterized by a high safety protection against contamination. Energy-saving Ceramic Cross-flow Filters The GEA rotoramic is an energy-saving filter for beer recovery from surplus yeast, helping brewers achieve maximum yields. The ceramic cross-flow filter uses about 75 percent less energy than standard cross-flow

GEA Remote Eye Wear is specifically designed to enhance communication and provide virtual real-time connectivity. (Photo: GEA).

processes. Modular Batch Mixing System For Non-alcoholic Beverages For non-alcoholic beverage applications the GEA DI-BATCH™ allows for complete control and high flexibility of the production process, featuring accurate dosing, material traceability and parallel operations. As partial amounts can be taken from the containers by means of a suction lance, manufacturers are more flexible in their production volumes and can purchase their base materials in varying container sizes – all of these are strengths that make DIBATCH ™ also attractive for smaller test batches for product launches or research and development. Live Demonstrations With GEA Service, beverage manufacturers can improve the life cycle costs of their production plant. Especially for the brewery and beverage industry, GEA Audits are offered, for example, that recognize the hidden potential of components, systems and processes; Optimization proposals are being developed. GEA will also be demonstrating the PerformancePlus concept live: Based on the data from an online condition monitoring system, GEA experts carry out analyzes and recommend measures for the best possible plant operation. GEA also presents a patented robotic crack inspection service for all types of vessel walls. The high-definition and nondestructive testing (NDT) ultrasonic system detects every blemish in the tank or silo. Moreover, visitors can test GEA Remote Eye Wear live, a groundbreaking service innovation that enables virtual experts to support machine operators and service technicians in-real time. GEA’s service staff at drinktec will inform customers about all further options of the service concept "GEA Service - For your continuous success" on the stand. J

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I DRINKTEC 2017 PREVIEWS

Reducing Your Cleaning Time to Produce More Beverages Today’s beverage market is much more demanding than it once was. he end customers who are consuming T beverages are no longer content with a limited number of choices. Instead, they’ve become used to a wide variety of options. If you as a beverage manufacturer are unable to provide those options, these end customers are likely to go to a competitor who can. The problem with this is that you likely aren’t able to dedicate one process line for each different flavour of beverage. It’s simply too expensive to do that, especially if you’re producing a large variety of beverages. This means you’ll have to clean each production line much more frequently than before. Every time you change which beverage you’re producing through that process line, it much be cleaned. This means in order to decrease your overall amount of downtime, you’ve got to increase how quickly you can clean each line. CIP or Clean-in-Place optimization has become one of the most important parts of beverage production because of this. The Importance of Cleaning Cleaning your process line is incredibly

Alfa Laval Valve Matrix.

important for several different reasons. The first is, obviously, contamination. You need to keep the system as clean as possible to avoid any bacteria or other contaminants from getting into the finished product. The second reason it’s vital to keep your system as clean as possible is that it prevents the transfer of flavours and aromas from one beverage to the next. This is a quality issue that can lead to a loss of customers if it’s not handled correctly. If there are trace amounts of a beverage left in the process line when you switch to producing another beverage, it’s possible the flavours of that beverage will be picked up by the new one. This can lead to an entire batch of product tasting wrong. This is especially true if the previous beverage had a very strong flavour to it. The Benefits of Rapid CIP The biggest benefit of optimizing your CIP process is that you will spend less time cleaning your system, which means you can produce more beverage. Your

Alfa Laval TJ40G Rotary Jet Head.

process lines can switch between beverages more quickly, decreasing the amount of time between production. The saying that time is money is certainly true and applies here—the less downtime, the more product and, therefore, profit, you’re making. But there are other benefits to optimizing your CIP. The first is the amount of water you use. By optimizing your entire process, you’ll not only use less time but less water. One of the ways most large beverage producers measure their efficiency is by how much water is used in the overall production process of a one liter beverage. A soft drink production with an optimized CIP system should not use more than two liters of water to produce one liter of beverage. Solutions to These Challenges There are a few different solutions to the challenge of rapid CIP optimization that you may want to consider. The first is the Alfa Laval TJ40G Rotary Jet Head. This tank cleaning machine is specially designed to remove any residue left in the processing tank while also reducing the amount of time it takes to complete a

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

cleaning cycle. The key difference between the Alfa Laval TJ40G and traditional spray heads is that the Alfa Laval TJ40G moves much more often. The use of more force cleans the system much more quickly, plus it uses much less water. Overall, the Alfa Laval TJ40G can reduce your water use by as much as 70% and your time by as much as 60% when compared to traditional cleaning systems. This system also has its own self-cleaning process, so your overall maintenance time is also reduced. Another solution to improve your cleaning system is the Alfa Laval LKH Prime pump. This is a CIP-return pump that can be used on its own or in combination as a CIP-return and a product pump. This self-priming pump makes use of an advanced design and air-screw technology to improve the CIP system keep the processing line clean. Using one of these pumps enables you to reduce your overall capital expenses by combining your product pump and your CIP pump. Finally, when compared to a manual swing panel, the valve matrix can help you change product much more quickly while decreasing the various risks associated with line production. These risks mainly have to do with the CIP liquid and cleaning agents that are introduced

Alfa Laval LKH Prime Pump.

into the system during this process. If this liquid, which is often caustic or acid, is allowed into the product, it can lead to a major quality issue. Likewise, the cleaning liquid needs to be properly flushed so that it doesn’t enter the atmosphere or present a risk to employees. A valve matrix equipped with mix-proof values prevents this from happening by enabling the flow of two different fluids through one valve via two independent plugs. This double-seat design allows for

spill-free operations, reducing the risk of contamination. There is no manual impact on the process, which reduces contamination and time. The valve itself has a top-loaded design, so it’s easy to clean and maintain as well. Ready to Improve Your CIP? If you’re ready to boost your CIP and reduce the chance of contaminating your product, visit Alfa Laval at Drinktec 2017. Hall 3B, Stand 3-323. J

I DRINKTEC 2017 PREVIEWS

Focusing on Conveyor Belt Lubrication at Drinktec 2017 controlled lubrication of conveyor belts and uniform wetting A of the conveyor belts across their entire width are crucial for ensuring process reliability in beverage filling plants. Klüber Lubrication will present its new Klüberplus C2 Dry series at the Drinktec 2017 in hall A3, stand 332. This innovative solution for the lubrication of plastic conveyor belts combines the advantages of conventional wet and dry lubricants, minimising the generation

of deposits. All these products are made to match the requirements for the transport of carton packages, PET bottles and metal cans as they are registered as NSF H1 and are free of perfluorinated (PTFE) substances. "The development of modern speciality lubricants is so far advanced that they have to be considered operating components having a decisive effect on process reliability and thus the operating and maintenance costs," explains Jurgen Murhammer, Global OEM Manager Food Industry at Klüber Lubrication. "Our Klüberplus C2 series enables excellent lubrication of all critical friction points on a conveyor belt und contributes substantially to reduce friction between the conveyor belt and the bottle or can. Moreover, these lubricants meet all the requirements in terms of environmental protection and workplace safety, supporting plants in their regular audits to evidence highest hygienic standards.” Apart from new developments, Klüber Lubrication will be presenting its wide portfolio of speciality lubricants and services at the Drinktec 2017. KlüberEfficiencySupport helps users in the beverage industry save energy and avoid downtime. New in the portfolio is the EfficiencyManager, a software for a transparent process planning to get ready for Industry 4.0. The experts of Klüber Lubrication will be pleased to answer all questions relating to food safety, especially MOSH/MOAH issues. J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I DRINKTEC 2017 PREVIEWS

ALECTIA and NIRAS Have Merged – Hall A2, Booth 124 A new and stronger NIRAS is now a reality, as a result of the merger of ALECTIA and NIRAS effective from April 21st, 2017. he new NIRAS is now a stronger Scandinavian consultancy of 2,100 T employees and global ambitions for its core areas of expertise. CEO Carsten Toft Boesen comments: “The merger has created a new global player in the process engineering industry and increased our ability to offer even more value under one roof. On the basis of strengthened expertise and expanded international presence in the Nordic countries as well as in both African and South East Asian countries we look forward to cooperating with our clients in the future.” Furthermore, the keyword ‘sustainability’ is a core value going forward - "We use our expertise to create sustainable solutions for our clients, that in turn contribute to the vast majority of the 17 UN goals for sustainable development," says Carsten Toft Boesen. Business Areas From its offices worldwide, NIRAS seeks to create sustainable solutions to the challenges of the future. Among others, you will be able to seek out advice from more than 2,100 experts in the following service lines: • Analysis & Planning

• • • • • • • •

Building Energy GIS, Geodata & Automation Infrastructure Working Environment Consulting Environment & Nature Process Industry Development Consulting

• Water & Utilities. “Our professional areas are now even stronger. This gives our clients access to more services and more comprehensive expertise. Our increased geographical coverage will significantly strengthen our position in our markets. It will strengthen our competitiveness and position as a leading consultancy firm for construction and industry,” he adds. NIRAS is one of the market leaders in Scandinavia within such fields as construction, renewable energy, process industry, as well as the environment, water and utilities, among others. “Our goal is to generate three-figure million growth by 2020. We see this growth coming from within the process industries Sweden and Norway, the Food & Beverage industry in selected developing countries, and not least through increased cooperation with key customers," says Carsten Toft Boesen. He continues: “With 2,100 employees, NIRAS is now a company with even greater scope for the development of specialists who will have the best possible career opportunities. And this is something which is required now, and in the future, as competition to attract skilled employees increases.” J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I DRINKTEC 2017 PREVIEWS

Energy Saving 1040 Series TableTop and 1001 Series MatTop Take Engineered Sustainability to the Next Level Sustainability is the capacity to endure. Engineered Sustainability™ by Rexnord® is a product program to help you design durable conveyor systems with components that guarantee optimal product handling without compromising the ability to meet targets on safety improvement, increased productivity, water reduction and energy savings. goals and have been developed and manufactured in line with what customers need. KPI’s, safety goals and sustainability goals such as water usage in their production facilities are studied. All this information is the basis to define Rexnord’s strategy in this area. The Engineered Sustainability Product Program includes the Rexnord 1040 Series TableTop® Magnetflex® Chain and Rexnord 1001 Series MatTop® Chain, which will be presented at Drinktec in Munich, Germany in Hall B4, Stand 313. he program highlights the on-going commitment to creating and manufacT turing environmentally-friendly conveyor equipment. Selecting the right conveyor equipment can deliver impressive energy reduction, water reduction and improved conveyor safety in comparison to more traditional conveyor concepts. Rexnord believes that everything starts with the voice of the customer. The products support customers’

Rexnord 1040 Series TableTop Magnetflex Chain The Rexnord 1040 Series TableTop Magnetflex Chain contains state-of-the-art features to provide the lowest friction at a constant level, resulting in direct energy saving on each conveyor. The chain helps reduce or completely eliminate external lubrication and additional waste water collecting on your equipment, with products that are suitable for “dry running” at highspeeds.

safety is further improved with the Rexnord 1001 Series MatTop Chain. The chain requires little to no external lubrication and features closed chain surfaces for minimized noise levels. The result: increased production and security at the lowest possible overall operating costs, plus reduced water and energy consumption. For further information contact Rexnord FlatTop Europe on Tel +31 (0)174 445111, Fax +31 (0)174 445222, Email rexnord.flattop@rexnord.com or visit www.rexnordflattop.com. J

Rexnord 1001 Series MatTop Chain In any working environment, safety comes first. In the beverage filling industry, potential safety hazards on production lines include: slippery floors, high noise levels and excessive high-speed moving parts in machinery and on conveyors. At the Drinktec, Rexnord will demonstrate how

About Rexnord Flat Top Rexnord FlatTop, a subsidiary of the American company Rexnord, is a leading manufacturer of conveyor products for the beverages and liquids production industry. The company has plants located in The Netherlands, Italy, the U.S.A. and China. The company’s product portfolio includes conveyor chains, gears, bearings, clutches and industrial chains, ensuring the secure transportation of containers regardless of container contents or transportation speed. Rexnord FlatTop collaborates closely with its clients to co-develop sustainable conveyor systems that increase productivity and security while minimising water and energy consumption.

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I DRINKTEC 2017 PREVIEWS

Fast, Flexible Filling With SuperTrak – B&R Presents High-speed, No-spill Transport Technology at Drinktec &R offers beverage and liquid food producers a new generation B of high-speed, slosh-free transport with exceptional versatility for fast format changeovers. At this year's drinktec exhibition from September 11-15, visitors to Booth 328 in Hall A3 can learn from B&R's industry experts how to make the most of the smart manufacturing revolution. All the speed without the spills Industrial-grade, service-friendly SuperTrak is the only long-stator linear motor based system on the market to feature anti-sloshing technology. This prevents spills during transport and positioning and allows filling lines to be operated at higher speeds. Independent SuperTrak shuttles allow mass customization with minimal time lost on stoppages and changeover. Web-based HMI made easy Another highlight will be mapp View, which allows developers to create powerful web-based user interfaces right from the engineering environment without any knowledge of the underlying web technology. Authorized users gain intuitive access to advanced control and diagnostics – whether on an IP69K multi-touch panel, smartphone or tablet. Industrial IoT ready Whether visitors are starting a greenfield project or considering a

At drinktec 2017 (Booth 328, Hall A3) B&R will showcase its industrial-grade, service-friendly SuperTrak transport system, featuring anti-sloshing control to prevent spills during high-speed transport and positioning.

brownfield upgrade, they will find a smart manufacturing solution that perfectly fits their needs at the B&R booth. With dedicated technology and global communication standards like OPC UA, B&R is the right partner for implementing Industrial IoT solutions in both new and legacy equipment. J

Tate & Lyle and Sweet Green Fields to Launch Partnership Stevia Portfolio ate & Lyle, a leading global provider of T speciality food ingredients and solutions, and Sweet Green Fields will be presenting their new partnership portfolio of innovative stevia ingredients and solutions for the first time in Europe at this year’s Drinktec trade show at stand B1/535. A special menu is set to inspire manufacturers to use Tate & Lyle’s comprehensive new range of stevia ingredients to reduce calories cost-efficiently in food and drinks, without compromising on taste. Visitors to the stand will be given an overview of the five new product families and will be able to experience first-hand the new stevia portfolio Tate & Lyle and Sweet Green Fields now offer*. This includes the pioneering Optimizer range,

the partnership’s latest innovation, which offers unique, low cost alternatives to RebA 97 with the same great taste. Tate & Lyle’s team of industry experts will be at the stand to offer support and

advice to European manufacturers in meeting the demand for reduced calorie food and drinks, with 90% of consumers saying that taste is their top purchase motivator. Tommy Lykke Husum, Senior Product Manager at Tate & Lyle, says: “Our partnership with Sweet Green Fields has enabled us to add the broadest and most competitive stevia portfolio in the industry to our sweetener platform. We can now additionally offer our customers a combined, in-depth knowledge of stevia from seed to sweetener, on top of our best in class sweeteners expertise. The partnership has enabled us to become the ingredient supplier best positioned to offer full sugar reduction solutions to our customers.” J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I POULTRY

Cargill Invests in Sustainable Poultry Expansion Having recently invested £35 million in its fresh chicken business in the UK, Cargill Meats Europe is well placed to capitalise on the continued growth in poultry meat consumption, and to contribute to the ongoing transformation of its US-based parent group. argill Meats Europe is part of Cargill, the privately-owned global agri-food group. As a leading supplier and innovator for a wide range of poultry, including tray-packed fresh chicken, BBQ, rotisserie, marinated or coated products, Cargill Meats Europe serves customers across the European retail, food service and food manufacturing sectors. In addition to its production and processing operations, Cargill Meats Europe is also one of the largest importers of fresh frozen chicken from Thailand and Brazil into the European market. Although Cargill is in the process of transforming its business through a series of acquisitions and disposals, the European poultry business remains one of its core activities.

£35 Million Investment In line with its strategy of partnering with key customers in supDavid MacLennan, chairman and chief executive of plying food that is Cargill. safe, nutritious and affordable, Cargill Meats Europe recently implemented a £35 million capital investment plan at its UK fresh chicken business. The company’s flagship site at Hereford in England has been transformed into one of the most efficient and competitive processing plants of its type in Europe, as Cargill’s UK poultry business has been refocused on the retail sector and key partners in food service. Hereford has been the base for Cargill’s poultry business in Europe for more than 50 years. Cargill also operates production facilities in Wolverhampton and Newent in the UK. In addition to expanding Cargill’s capacity to process and supply fresh UK reared chicken, the expansion programme has created a state-of-the-art processing facility at Hereford. The adoption of the latest technology, including robotic packing, cutting and evisceration systems, is increasing efficiency while also enhancing productivity, quality and food safety at the plant. Indeed, Cargill was the first processor in the UK to introduce this type of machinery, in partnership with Marel Stork. The bird reception area of the Hereford plant now uses controlled atmosphere stunning, chilled capacity has been expanded from 1.35 million birds to 2 million birds and the latest robotic

and cutting technology has been installed. The new evisceration area not only operates at higher speeds but also facilitates the harvesting of additional products from the birds. Cargill has also invested in energy saving and environmentfriendly technologies, such as water meters, energy meters and collection and monitoring software to identify ‘hotspots’ for consumption of these resources. Continual improvements in the high use areas combined with behavioural change programmes have resulted in significant saving - a 20% reduction in water use versus volume produced (358 million litres per year saved) and a 20% reduction in greenhouse gas intensity (more than 10,000 metric tonnes of CO2 per year). Sustainability Cargill Meats Europe is committed to a comprehensive approach to sustainability across all aspects of its vertically integrated poultry business encompassing farms, hatcheries and processing sites. Cargill operates a farm to fork strategy focused on establishing responsible and sustainable supply chains. In its goal to provide safe, nutritious and affordable chicken, Cargill seeks to minimise the environmental and social impacts of its operations and supply chains, respect the animals in its care while improving welfare standards, and to enrich the communities where it operates. Cargill Meats Europe has a strong track record in this respect. It was one of the first chicken producers to carry out a carbon footprint as well as a water footprint assessment of its European supply chain from hatchery to finished product to understand the environmental implications of its operations. Furthermore, the company was the first chicken supplier to install windows into all of its chicken houses in the UK to help stimulates bird activity and natural behaviour. Indeed, through a strong partner network and its own operations, Cargill Meats Europe endeavours to manage the traceability,

Cargill Meats Europe’s flagship site at Hereford in England has been transformed into one of the most efficient and competitive processing plants of its type in Europe.

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

Cargill Meats Europe is committed to a comprehensive approach to sustainability across all aspects of its vertically integrated poultry business encompassing farms, hatcheries and processing sites.

quality, supply chain, risk management and technical needs of its customers. Food Safety Cargill takes its responsibility for food safety very seriously and has taken measures to tackle the problem of Campylobacter across its entire supply chain, starting with its farms and primary processing. All farmers now receive comprehensive information on Campylobacter and Cargill has optimised its on-farm bio-security procedures, which are continually audited to help protect flocks from infection. As part of its farm-to-fork commitment to reduce Campylobacter levels in chicken, Cargill has introduced SonoSteam technology. Developed by the Danish company Force Technology, SonoSteam uses a combination of steam and ultrasound to kill microorganisms such as Campylobacter on the skin and internal cavities of chicken during processing. Other measures to reduce Campylobacter levels at Hereford include the installation of a new £11 million state-of-the-art chiller and ultraviolet light (UV) finished pack decontamination equipment. Many of the techniques and systems successfully developed at Cargill’s Hereford operation are rolled out across the group’s global poultry businesses in China, Canada, Thailand and Central America. Cargill Meats Europe operates within the US-based parent group’s Animal Nutrition & Protein business. Cargill’s other business segments are Food Ingredients & Applications, Origination & Processing, and Industrial & Financial Services. Indeed, a strong performance in global animal nutrition, value-added protein and poultry in many global regions, has been a feature of Cargill’s changing business in recent times.

As part of its farm-to-fork commitment to reduce Campylobacter levels in chicken, Cargill has introduced SonoSteam technology.

Transformation Cargill is currently in transformation mode as it seeks to strengthen its financial performance, adapt to changing consumer demands, and to become the most trusted source of sustainable products and services for customers. For the year ended May 31, 2016, Cargill reported adjusted operating earnings of $1.64 billion, a 15% decrease from the prior year. However, on a US GAAP basis, net earnings rose 50% to $2.38 billion. The variance between adjusted and net earnings included gains on sales of businesses and other assets, asset impairment charges and a LIFO inventory adjustment. Group revenue declined by 11% to $107.2 billion, reflecting lower commodity prices, a strong US dollar and divestments. “We are looking ahead as we position our company for higher performance and sustained growth,” explains David MacLennan, chairman and chief executive of Cargill. “We have more work to do, but where we have already made changes we are seeing improved results.” During the year, Cargill made major adjustments to its portfolio. “This includes more than $3 billion in strategic acquisitions and new or expanded facilities, as well as nearly $2.4 billion in divestitures,” he says. “These moves are making us more competitive in

Cargill is investing in food innovation centres to meet changing consumer demands.

sectors where we intend to lead.” Indeed, Cargill saved more than $200 million by increasing efficiency in its plants and supply chains, and by scaling up global shared services. Expansion in Protein A central element of Cargill’s transformation strategy is to expand its protein business. The US group recently announced about $500 million in acquisitions and investments to grow its North American protein operations, and has partnered with Jollibee Foods, Asia’s largest food service company, to build a supply chain for specialty poultry products in the Philippines. It also acquired salmon nutrition leader EWOS. Since the year end, Cargill has acquired Bucanero Chicken, one of Colombia’s leading producers of chicken and processed meat products. The acquisition marks Cargill’s first introduction of its global protein business into Colombia. Cargill is also investing $50 million to expand its poultry processing operations in Thailand, where it has been operating for 25 years and has grown to become the leading exporter of fully-cooked chicken products in the country. The investment will strengthen Cargill’s position as a leader in the food and agriculture industries in Asia Pacific. Meanwhile, Cargill is investing in food innovation centres to meet changing consumer demands. Reflecting an intensified commitment to innovation in food, nutrition and food safety, Cargill has just opened two major R&D facilities - one in North America and one in China. The two new centres join regional food research and innovation centres in Campinas, Brazil; Vilvoorde, Belgium; Beijing, China; and Wichita in the US, as well as local food application facilities, animal nutrition research centres and product development centres around the world. J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I POULTRY

Proseal Technology Supports Cargill’s Success lexibility, adaptability and an efficient reliable performance that provides full F traceability are the key benefits of the Proseal GT2 tray sealers installed by Cargill Meats Europe. Product quality and freshness are essential to meat companies in highly competitive retail markets and Proseal’s gas flushing technology ensures effective Modified Atmosphere Packing (MAP) to help deliver extended shelf-life for Cargill’s product range. Quality can be affected by many different factors, including mistakes during production. A key feature of the Proseal tray sealers is the company’s innovative Pro-Tect security system which gives each operator

of the machine his or her own access, with different levels of authorisation able to be set for individual personnel. This prevents unauthorised access to the machines’ settings to ensure that only the right person is able to input the necessary information. Equally important, the system can perform audit functions and create a digital archive, and all this data can be exported to other computer systems. In this way, the GT2s are able to keep a detail log of information that provides full traceability as well as enabling Cargill to identify areas where efficiencies might be improved. E-seal® Technology In busy consumer markets, pack quality can be almost as important as product quality, particularly in terms of creating the right brand image. Proseal’s pioneering E-seal® technology ensures excellent seal reliability 42

to meet the stringent quality requirements of the food retail sector, while the integrated registered film with coding also helps to enhance presentation on-shelf. E-seal® provides an increased seal force of 600% to create such high quality seals, but just as important, it is also able to achieve this while delivering a 92% reduction in energy usage. In this way the technology combines valuable cost savings with vital sustainability benefits to help businesses achieve a reduction in their carbon footprints The GT2s have been supplied to Cargill in their S specification, which offers the availability of atmospheric, gas flushing and hermetic shrink sealing. These models have been designed for customers wishing to seal these pack processes at ultra-high cycle speeds. For greater versatility, the GT2E model is also available, which provides additional sealing choices including Vacuum MAP, Skin Packaging below and above the flange, and Skin Deep. Future Proofing At the same time, in continually-developing markets, new product development is a continuous process and companies also need to be able to respond to new trends or

consumer demands. For this reason, Proseal designs all its tray sealers with an element of future proofing. This allows existing customers to retrofit new machine features as they become available, giving manufacturers the reassurance of knowing that they will have the capability to handle the latest packing development without the need to invest in new kit every time. Like all Proseal models, the GT2 retains Proseal’s renowned rugged construction to food industry approved hygiene standards with full wash-down protection. Proseal’s established ‘Auto Tool’ connection system enables tool changes to be carried out in around five minutes, while downtime is further minimised by the use of quickchange conveyor belts, and an auto-lock film reel holder. The machine’s practical design is enhanced by situating the electrical controls above the sealing area, which also allows safe access for cleaning. Other useful features to help maintain consistent operation include a fibre-optic based pot-crush prevention system, plus automatic film snap and film end detection. All these feature ensure that the Proseal GT2s offer consistently high speeds of in excess of 90 packs per minute. Established in 1998, Proseal is today the UK market leader in the design and manufacture of tray sealing solutions with an enviable reputation for the quality and technical innovation of its equipment. The company has an in-depth understanding of the stringent production requirements of the food sector, and is also known for providing a high level of after-sales service. J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I POULTRY

Premium Shelf Presentation – Marel Linerless Wraparound Labeler Fixed-weight or Catch-weight The M360 labeler can be applied very flexibly. It is available as a stand-alone unit for fixed-weight poultry packs or can be connected to a weighing unit such as a Marel weigh price labeler for catch-weight products.

onsumers feel much more tempted C to buy poultry meat products when trays are attractively packed and labeled. It is therefore of high importance to present a premium presentation. The new Marel M360 labeler will provide wrap-around labels with great shelf impact. Marel’s M360 standard wrap-around labeler makes use of the latest technologies in flexible linerless labeling. It is designed for premium labeling of all popular tray sizes and is ideally suited for skin packs of poultry meat. By means of a fully automated procedure, this high-speed labeler can apply standard wraparound labels as well as Cwrap partial wraparound labels and top labels. Linerless labels provide all the benefits of self-adhesive labeling and cartonboard sleeves and add improved efficiency to it, as well as volume applications and environmental advantages.

Increased Uptime The entire M360 configuration is quick and easy to set-up and use. Initiating and changing labeling programs is simple as ABC, which makes for increased efficiency and less downtime. As the labels make for 40% less reel weight compared to self-adhesive labels, reels can feature a larger number of labels. This means fewer reel changes are needed during production, which also adds to increased uptime.

Consistent On-shelf Format A package label is an powerful means to get across a variety of messages. The linerless wraparound labels produced by Marel’s M360 offer plenty of space to communicate essential information. The increased print area provides extra surface for brand signage as well as product details. At the same time, these labels comply with all food-labeling regulations. Whatever solution is chosen, the Marel M360 takes care of a consistent on-shelf format. At the same time, the robust label can serve as a tamper seal for improved security and food safety.

Less Paper Use The M360 uses labels which offer improved efficiency and increased application speed, with the ability of handling higher volumes. It is possible to run high-speed labeling at up to 100 packs per minute. “Linerless” means that this labeler needs no carrier backing paper to protect the self-adhesive layer of the label. Therefore such backing paper is not wasted. Instead, the back side of the label has received a special treatment so as to not stick to the underlying layer on the reel. All in all, sustainability is an important asset of linerless labeling. Reduction of both material costs and waste offer considerable environmental advantages. For more information, please visit www.marel.com/m360-poultry. J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I SUPPLY CHAIN

Invest in Plastic – Why Food Retailers are Reaping the Financial Benefits From Owned Plastic Pallet Pools Goplasticpallets.com Managing Director, Jim Hardisty, explains how retailers can generate revenue from owning plastic pallet pools. he food retail industry continues to T become more demanding. Like many, it is reliant on international product supply and distribution. Spanning multiple stakeholders from local and international suppliers and manufacturers, distribution hubs and finally out to the stores, each counterpart is responsible for the smooth running of their “link” in the chain. With this in mind, it’s no wonder that we’ve seen plastic pallet pools becoming ever popular within the food retail industry. Hygienic, durable, consistent and designed with the application in mind, plastic pallets offer a high return on investment. Historically, large food retailers relied on wooden rental pallets. Now, plastic pallets are recognised more and more as the resilient choice, with a longer “working life” – four times that of wooden pallets. In fact, we’ve seen retailers starting to actively cultivate income from creating and using their own plastic pallet pools. Generating a revenue stream for major retailers After realising the long-term benefits, many of our customers have taken the opportunity to generate a revenue stream through creating their own plastic pallet pools. They can the rent the pallets from within the pallet pool, to suppliers and other partner businesses. Furthermore, owning the pallet pool creates a group sense of responsibility for the pallets, which are now seen as “assets”. With several parties invested in the successful running of the pool, there is greater inherent control. A pool of owned plastic pallets provides the owner with greater flexibility and a better return – without incurring the costs associated with renting. If plastic is the superior choice, why are so many businesses still using wooden pallets? Many retailers still use pools of wooden rental pallets with the perception that they are cheaper to use and if any are lost or dam-

aged, it’s not such a great burden to them. However, when you factor in delivery and collection charges, pallet “rent” and any additional penalties obtained for lost or damaged pallets, the true cost of renting can be incredibly high. Sometimes much higher than anticipated in the long run. Rental pools do have a lower initial cost, which certainly has its appeal. However, much like choosing to rent a property or taking out a mortgage, the real question should be: Why put money in someone else’s pocket when you could invest in your own, longterm asset that will pay back dividends? This is the empowering mindset that many of our customers are now taking. The benefits of implementing owned plastic pallet pools In a plastic pallet pool, responsibility for the pallets is shared. The retailer or distribution centre receiving the palletised goods are accountable for collecting the loaded pallets. They are then in charge of inspecting, sorting and cleaning them. This model not only suits the owner, but is more virtuous for the other parties in the chain. Distributors prefer plastic pallets because they are significantly lighter, improving manual handling conditions; they enable the dispatcher to put more product on a truck and increase trailer fill; and they deliver more trips per life cycle than wood. Plastic pallets are made to a high standard, with precision consistency when compared to wood.

Within the scenario of a food retail supply chain, it’s wise to invest in a durable, consistent plastic pallet. For example, the APB 1210 Pool Perforated 5R is perfect for large retail pools because it can withstand the strain of repeated use. A complete logistics loop solution in one pallet. The APB 1210 Pool Perforated 5R is an ideal, heavy duty solution for use through the logistics process. From supplier to the retail distribution centre and into the store for retail. This model and type of pallet is especially beneficial to major supermarkets, retailers with multiple stores and franchises with high volume supply chain. Moreover, by using hygienic plastic pallets, companies are compliant with pharmaceutical andfood handling regulations. Produce can go straight out onto the shop floor, removing the need to transfer it onto different pallets. A highly suitable medium duty pallet, the IPS 1210 Medium M5R is ideal for transporting light loads. Often in small batches, such as fresh fruit and veg, chilled meats; garments and household goods as retailers continue to broaden their in-store offering, and in-store displays. The benefits of using plastic pallets over wooden rental pallets speak for themselves. Through owning a plastic pallet pool, retailers can utilise one type of pallet throughout the logistics chain, and actually make money in the process. J

One size pallet fits all Impressively, a plastic pallet pool can be created using only one type and style of pallet.

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I TRANSPORT PACKAGING

Using Reco Without Risk – Schütz’s IBC System is the Answer nce they have been used, transport conO tainers re-enter the market after treatment with several different processes that range from simple cleaning to complex reconditioning. When it comes to reusing IBCs many different factors need to be taken into consideration. The most important are what product the IBC was previously filled with, what the IBC is to be used for and which tests and labels are legally required. Conserve resources by recycling: the principle of the system launched in the 1990s in Germany with the Dual System “The Green Dot” for used consumer packaging is still as relevant as ever. Reuse and recycle also plays a major role for industrial transport packaging and is often a driving force for innovations. For instance, over 30 years ago, Schütz developed its own recycling system, called the Schütz Ticket Service. This system has grown ever since and is now the largest manufacturer-operated global network for the collection and reconditioning of empty IBCs. Using identical high standards all over the world, the Ecobulk is turned into a 100-per-cent compatible Recobulk in the standard specification. The recently introduced brand name clearly communicates the fact that regardless of which of the two IBC types a customer uses, they receive packaging in the same original

The Schütz Recobulk has the same standard specifications as the Ecobulk – both containers are 100 per cent compatible.

quality including a new UN approval. This is a clear statement, because the term reconditioning is frequently used to mean completely different things in the industry, including, for example, cleaning, repairs, recycling. However, in reality these are merely stages in the reconditioning process. In accordance with ADR, reconditioned packaging must fulfil the same specifications and pass the same tests as the original new

Recobulk: the new brand name for reconditioned original quality by Schütz.

packaging. Strictly speaking, the term reconditioning refers only to metal and plastic drums and jerry cans. Regardless of whether the product in question is a drum or an IBC, the aim is to remove all traces of the previous contents and to restore the packaging to its original functionality in accordance with the approved model. Cleaning and Repair – Simple, but are they sufficient? The simplest level is cleaning, also referred to as regular maintenance. This process generally starts with an incoming goods inspection. Any product residues are suctioned out and disposed of externally. The container is treated with a pressure cleaner and then the inner bottle is cleaned – usually with an aqueous caustic soda solution. Any remaining labels are removed and all caps and gaskets are replaced. The container is dried and then checked with hot air to ensure it is leakproof. Finally, the interior and exterior appearances are visually inspected. Cleaning is a simple and relatively cheap process, but it is only a safe alternative to other methods if the IBC is being filled with the same product. Responsibility for this lies with the filler. The risk of contamination by residues or residual moisture, both of which can impact negatively on the subsequent filling product, can never be ruled out completely through cleaning. There is also the danger that the product has already permeated into the inner bottle, which can mean that the

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

IBC collections by the Schütz Ticket Service can now also be ordered through the app.

plastic accumulates a large quantity of contaminants after only a few cycles. This change is invisible to the bare eye and cannot be reversed by cleaning. A particular filling product can also act as a solvent for the previous product, presenting a permanent risk of contamination. Also, considerable quantities of water are needed for cleaning, which has a negative impact on the environment; additionally, disposing of contaminated washing water also has a high hazard potential. Another, usually more complex and timeconsuming process for reconditioning IBCs is to repair them, also known in the market as rebottling. Here, after incoming inspection, the IBC is repaired so that it successfully passes the type test again. This usually involves replacing the inner bottle with a new one with the same specifications. The container is checked to ensure it is leaktight and the overall condition is assessed. The advantage of this process is that the risk of contamination is ruled out because the inner bottle is replaced, thus protecting the quality of the filling product. However, the period for which the container can be used remains unchanged, as the validity is not extended if a new bottle is used. “Customers who package sensitive products and for whom the highest safety and hygiene standards are important should always replace the inner bottle rather than just cleaning the container,” says Andreas Wolf, Manager Reconditioning Services & Sales EMEA, Schütz GmbH & Co. KGaA. “That is why we recondition our IBCs.” Schütz Ticket Service – From Ecobulk to Recobulk Reconditioning under the terms of the Schütz Ticket Service takes place in accordance with uniform global environmental, safety and quality management standards in state-of-theart, certified lines. Collected Ecobulks are first assessed according to the last filling product

they were used for on the basis of an internal filling product database. The correct handling method is determined using the appropriate material safety data sheet. Then the inner bottle is removed from the steel grid, opened and any remaining product residue is removed and disposed of separately. The plastic components that have been removed are all recycled internally and used to make new parts, for example plastic skids. The container receives a completely new inner bottle. Components such as screw caps, outlet valves and label plates are replaced with new original parts. Only the robust steel grid and the bottom plate are repaired if necessary and are reused. The container is submerged in water to ensure

that it is leaktight. Schütz always conducts 100% tests, i.e. all parts of a production batch are tested. In order to completely rule out any potential risks that could result from the parallel use of new and used packaging, reconditioned Schütz IBCs offer precisely the same high level of safety as new ones. Ecobulk and Recobulk are available in exactly the same standard specification. Andreas Wolf explains: “This close link is represented by the new brand name Recobulk for reconditioned containers. From the very beginning, reconditioning to achieve the original quality was an integral part of Schütz’s packaging system. Our customers benefit from this system’s flexibility, dependability and sustainability.” A further great advantage is the fact that the production of each new Recobulk saves around 100 kilograms of CO2 emissions compared with a new IBC. A Long Tradition of Reconditioning Schütz has long-established expertise in reconditioning: as a pioneer in the industry, the company first started reconditioning in 1976 and, as the first manufacturer, has guaranteed the collection of used containers since 1980. The basis for the administration-free process is a constantly expanding logistics network, which currently includes 47 production and service sites. This guarantees short transport routes and constant supply security. In order to make collections as easy for customers as possible, they can now also use a specially developed app, in addition to ordering collections by fax, email, telephone and online. J

Reconditioning with the Schütz Ticket Service – a recycling system that saves valuable resources and eliminates the risk of contamination by residues.

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

Real Time Environmental Data Collection â&#x20AC;&#x201C; Inside a Food Pack! MCO Packaging has developed an E advanced and highly sensitive data logger that collects environmental data actually from the inside of a food pack. It measures oxygen content, temperature, relative humidity & pressure and operates from the time the food is packed on the production line right through storage, transport and even whilst it is on display in a frozen, chilled or normal cabinet. The data logger can communicate wirelessly as well as storing up to 300,000 records in memory for later USB download. By accurately monitoring the environmental conditions from inside the pack, the system provides the data necessary to

analyse any changes, trends or conditions and optimise each part of the process from the packaging materials themselves, through to storage, transport and display

conditions. As a result produce can be delivered to the consumer in peak freshness and quality conditions. Not only does the gas logger produce more accurate and realistic results throughout the supply chain than can be gained by ripping packs open at every stage of the process to take measurements - but it is far less destructive as well! The data logger is just 65mm x 50mm x 37mm and is manufactured to a particularly high and rugged engineering standard. Oxygen and humidity are both measured to a resolution of 0.05% and 0.04% respectively, temperature to an accuracy resolution of 0.01% and pressure to a 16 bit resolution over a range of 10-1200mbar. J

Riggs Autopack â&#x20AC;&#x201C; British Manufacturer of Depositors & Filling Machines iggs Autopack Ltd is a British manufacturer of high quality volR umetric depositors and filling machines, transfer pumps and automatic conveyor filling lines. They are a UK market leader with an excellent reputation and supply their equipment to the food production industry. Their semi or fully automatic depositors and filling machines are one of the most precise and hygienic on the market with exceptional performance, reliability and build quality. They effectively deposit hot or cold liquid, semi-liquid and suspended solid products, and accurately fill most types or size of container. Typical goods manufactured using Riggs Autopackâ&#x20AC;&#x2122;s depositors and filling machines include preserves, condiments, sauces, dips, dressings, marinades, soup, ready meals, coleslaw, quiche, sandwiches and pies, pate, dairy goods, seafood products, desserts, cakes and puddings. Riggs Autopack take great pride in supplying their equipment to a huge variety of food manufacturers. Clients typically range from small start-up companies through to multi-national food groups such as Bakkavor, Kerry, Greencore and Samworth Brothers. If you're a small, medium or large scale food manufacturer seeking a high quality system to accurately fill jars, bottles, pots, tubs, ready meal trays, cake tins, buckets, jerry cans, pouches or bags, then Riggs Autopack could have the solution. For further information contact Riggs Autopack Ltd on Tel 44 (0)1282 440040; Email info@riggsautopack.co.uk or visit www.riggsautopack.co.uk. J 48

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I FRESH PREPARED FOOD

Bakkavor in Strong Position to Sustain Long-term Growth Bakkavor is continuing to benefit from the steady expansion of the fresh prepared food sector, which is growing ahead of the overall UK grocery market. ounded in 1986 in Iceland by brothers Agust and Lydur Gudmundsson to manufacture and export fish products, Bakkavor has developed into a leading international processor of fresh prepared food. In its core UK market, Bakkavor is now the number one producer by value in 12 of the 16 categories of chilled food, such as ready meals, pizza, salads, desserts, soups and sauces, it supplies to the market. Bakkavor focuses on building long-term relationships with its customers. Customers include some of the UK’s best known grocery retailers including Tesco, Marks & Spencer, Sainsbury, Waitrose, Asda and Morrisons, which sell Bakkavor’s products to consumers under their respective retailer brands. Bakkavor also has an International division with operations in the US and Asia supplying fresh prepared food products to both retail and food service customers.

Revenue Growth Bakkavor’s UK operation increased revenue by 2.9% to £1.564 billion in 2016 with growth driven by good volumes following a number of business wins across its core categories, facilitated by increased capital investment in recent years. Indeed, the UK business exhibited strong underlying growth across all its key customers. The International operation increased revenue by £16.2 million to £171.7 million in 2016. Revenue was impacted by the sale of the Belgian business but this was offset by currency gains following the recent weakness in Sterling. On a like-forlike basis growth was 7.9%, with increased volumes in the US and China as Bakkavor continued to broaden its product offering in both markets. Business Model Bakkavor’s business model for long-term growth is to develop and make innovative food products for its customers, providing choice and quality to consumers, and to use the cash generated to invest for future growth. During 2016, Bakkavor significantly increased its capital expenditure – from £38.2 million in 2015 to £67.3 million – as it invested in capacity and efficiencies following significant business gains in the ready meals, pizza and salads categories. Bakkavor focuses on three core areas of investment - quality, capability and capacity. In 2016, Bakkavor improved its leaf washing and drying systems, launched

Agust Gudmundsson, chief executive of Bakkavor.

gluten-free meals and installed its third wood-fired pizza oven. Innovation is the lifeblood of Bakkavor’s business and the group employs more than 220 development experts. Working with customers, Bakkavor launched over 730 new products in the UK alone during 2016, to meet the changing demands of consumers and to help drive further growth in the sector.

Development Strategy Bakkavor’s strategy is to leverage its UK expertise in fresh prepared foods to exploit opportunities in the US and China. Fuelled by consumer demand for convenient high quality products to suit busy lifestyles, sales of UK fresh prepared food are increasing by 4% per annum and were worth £7.3 billion Outlook “Our focused, strategically-aligned business in 2016. Bakkavor has also identified signifmeans that we can look ahead with confiicant opportunities in the US, where owndence. We understand challenges will label sales only account for 14% of the total inevitably lie ahead but I believe that the grocery market. In China, the food service group has never been in a better or market is projected to grow by about 10% stronger position,” says Agust per annum over the next five years. Gudmundsson, chief executive Bakkavor has now completed of Bakkavor. the reshaping of its business He elaborates: “We now have which began in 2012 following a an operating model that is decision to exit markets in aligned to customers and cateContinental Europe in order to gories; the know-how to deliver focus on the three key strategic products that our customers markets of the UK, USA and value; leadership in a growing China, which offer the best longmarket; and the financial robustterm growth prospects. This ness to capitalise on new, valuetransformation was completed in accretive opportunities. TogetAugust 2016 with the disposal of her, I am confident these its operating business in Belgium. Focusing on just three strengths will enable us to realise core regions enables Bakkavor to our vision of being recognised work closely with a number of and respected as the world’s strategic partners in its key marleading fresh prepared food Bakkavor focuses on building long-term relationships with its customers. kets. provider.” J FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I MIXING & BLENDING

High Shear Mixing Experts about 7-8 minutes, compared to HOURS for a 325-gallon batch. This result came even after incorporating another granular preservative with the xanthan gum.” The plant's quality manager was also impressed with the Rotosolver, adding he had never seen such a thorough, speedy dissolution of xanthan gum. Along with this case study, Rotosolver has also been used in hundreds of other applications involving thickeners and cellulose gums, like CMC.

or processors that work with proF teins, starches, gums, vitamins, and flavourings, the Rotosolver high shear mixer is a must-have. This workhorse makes light work of all types of ingredients and with thousands of installations around the world in food, beverage, dairy, condiments, and meat and poultry manufacturing facilities, Admix continues to set the global standard in mixing applications for every industry. Improving Your Process

For 100% wetting out of powders and an easy-to-clean design that meets strict sanitary requirements, the Rotosolver high shear mixer is an industry leader. The Rotosolver’s design offers high intensity, high-speed batch mixing, improved dispersion, and reduced energy consumption for volumes up to 10,000 litres. For benchtop testing, the BenchMix lab mixer helps processors test, scale up and go to market faster with a process assurance warranty. “The Rotosolver outperforms our competitors in many key performance areas,” according to Bjarne Buchert, General Manager of Admix Europe ApS. “It delivers up to 50% less energy consumption, up to 600% higher flow rates, 20% higher tip

See Rotosolver in Action!

speeds, and around six times more throughput than conventional high shear mixers. Our customers couldn’t be happier with the process results they’re getting.” Innovative, Energy-Saving Design Receives US Patent

Recently, Admix received a United States patent for the Rotosolver design. As part of a commitment to its customers, continuous improvement, and providing the most advanced technology in fluid mixing, milling and powder induction equipment, the Admix Innovation Team made design enhancements to the Rotosolver as a topentry high flow, high shear mixer and in June it was granted a US patent with others pending globally. The updated Rotosolver produces equal process results, but offers significant energy cost reductions, saving customers money and BTU input.

Are you looking for faster mixing results? View a short lab video at www.rotosolver.com to see the Rotosolver in action on xanthan gum, or get a Rotosolver quote today for your specific process and speed your way to better results and improved ROI at www. admix.com/quote. Alternatively, you can get free lab testing at its pilot plant in Denmark by visiting www.admix.com/lab. Admix is also promoting its entire mixing, milling, and powder induction portfolio at upcoming events and has added new service specials to be showcased in September at Pack Expo in Las Vegas, Nevada and Process Expo in Chicago, Illinois. Visit www.admix.com/events for a free pass to either. J

Mixing Xanthan Gum: A Case Study in Speed & Efficiency

As an industry leader for decades, the Rotosolver has received countless testimonials for its speed and ability to completely mix the most challenging ingredients. The accolades keep rolling in thanks to its newly patented technology, which offers even lower power consumption and improved, faster powder dispersion. One case study came from a North American co-packer that was struggling with a difficult formula involving the dispersion of xanthan gum. After experimenting with other solutions, the customer finally installed a Rotosolver and subsequently talked about his satisfaction: "The Rotosolver performance was excellent, and the xanthan gum was thoroughly mixed to a perfect consistency with no fisheyes in FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I MIXING & BLENDING

New Tetra Pak® High Shear Mixer Delivers Better Mixing Performance etra Pak has launched its next generation high shear inline T mixer, offering customers unparalleled ingredient mixing performance and lower operating costs. Featuring a radical new design that produces finer, more consistent and more stable emulsions, the new R370-1000D reduces the need for downstream homogenisation, delivers a better quality end product and cuts energy bills. Monica Gimre, Executive Vice President, Processing Systems at Tetra Pak, says: “We developed this revolutionary new design in direct response to customer needs. A complete break with the status quo, our new mixer streamlines production steps, reduces investment needs, lowers costs and sets a new benchmark for the industry.” Crucial to this innovative new mixer is the unique restructuring and integration of a built-in deaerating system, a flexible powder introduction system and a newly-designed mixing head. This allows the new machine to handle the highest viscosities for a recirculation mixer at up to 2,000 cP and break the size of the droplets to 1 micron (0.001 mm), significantly smaller than the industry average of 7 microns. The output of a much finer, more consistent and more stable emulsion reduces the need for downstream homogenisation, a

highly energyintensive step in food processing. This means that it is now possible to eliminate the homogenisation step altogether in the production of certain types of ice creams, cutting energy consumption by up to 50% in the overall process. The new mixer can also handle ingredients with up to 65% dry matter, the highest concentration for infant formula production. This cuts down the need for evaporation, another expensive step in food processing, slashing costs by up to 90%. The mixing machine produces at a capacity of up to 30,000 litres per hour and can be applied in the production of liquid dairy and beverages, ice cream and prepared food, as well as for most pre-mixing needs in food manufacturing. Tetra Pak holds a number of patents and pending patents for the Tetra Pak High Shear Mixer R370-1000D. For more information, please visit www.tetrapak.com/about/newsarchive/highshear-mixer-better-performance-cuts-energy-consumption. J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I FACTORY FLOORING & DRAINAGE

Hygienic Drainage Design Within the Meat Processing Industry the meat processing industry it is vital to maintain high hygiene IOnnstandards to ensure the fresh meat goods are safe for consumers. a daily basis regular and thorough cleaning regimes are in place to avoid the risk of contamination. There are a few factors to consider when designing a factory, which will help to contribute to a hygienic environment. A drainage system and the surrounding flooring needs to work together to provide an efficient rate of waste water removal. The flooring must provide appropriate falls, which are directed towards either a drain channel or a drain gully within a processing area, so the waste water does not start to pool. During processing, the meat industry produces solid fats and skeleton waste, which are required to be removed from the area during wash down. It is important that any solid debris is filtered out of the waste water via a drain trash basket, which sits within a drain channel outlet or drain gully.

An anti-backflow valve can also be installed onto a drainage system to close off the drain outlet pipe in the event of a blockage. The valve therefore prevents any waste water re-entering the meat processing area, removing the risk of contaminating fresh goods. To provide safety under foot for people working in the processing area amongst meats, oils and greases, an anti-slip stainless steel drain cover, in a ladder design with a scalloped edge, can work with the tread of a personâ&#x20AC;&#x2122;s footwear to prevent unnecessary slips and falls. Aspen stainless steel products are designed to help achieve a hygienic environment, with removable components to enable all drainage parts to be easily cleaned. Browse the product range online, which has full technical data available to download, and discuss your bespoke requirements with the Aspen Technical Team today; +44 (0)115 986 6321, aspen@canalengineering.co.uk, www.aspen.eu.com. J FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I FACTORY FLOORING & DRAINAGE

New White Paper Explores HACCP an effective Hazard Analysis and Critical Control Iitymplementing Point (HACCP) food safety management system is a central priorfor today’s food and beverage producers, as it is critical to complying with the standards of domestic and international regulatory authorities, governments and consumers. Flowcrete UK has produced a white paper entitled ‘What is a HACCP Food Safety Management System and How Does it Relate to Flooring?’ to help food and beverage businesses learn about this preventive risk assessment tool and ensure that all facilities comply with its guidelines. Flowcrete UK’s Managing Director, Kevin Potter, says: “We’ve worked with some of the world’s largest food producers at their most challenging plants and we’ve always ensured that the knowledge, experience and skills we’ve built up have been put to use creating floors that effectively meet the industry’s multifaceted demands. This white paper has been produced as part of our commitment to advise the food industry on best practice flooring, as it is essential to follow HACCP’s rules in order to ensure that the finish underfoot will provide the necessary properties for a food facility.” As the white paper explains, being HACCP compliant is vital to fulfilling the increasingly strict requirements of industry regulators. This is exemplified by the Food Safety & Hygiene (England) Regulations 2013 which reiterates Article 5 (1) of Regulation 852/2004 of the European Parliament: ‘Food business operators put in place, implement and maintain a permanent procedure or procedures based on the HACCP principles’. Parallel legislation is also in force in Scotland, Wales and Northern Ireland. When combined with the fact that many nations will require food to have been produced according to the same or similar principles, this means that failing to meet the HACCP benchmark can

stop businesses from trading both domestically and internationally. The HACCP process involves analysing food safety hazards and putting in place appropriate controls to eliminate or reduce contamination. Getting the floor area right is central to this, as failing to do so could put the facility at risk from unwanted and difficult to eradicate bacteria build-up which could easily infiltrate and spoil produce onsite. In the white paper readers will be able to find out what flooring characteristics and certifications they need to look out for in order to ensure that floors within production, processing and storage areas live up to the HACCP standard. To discuss specifying a HACCP International certified floor for a specific food and beverage facility contact Flowcrete on Tel +44 (0)1270753000 or visit www.flowcrete.co.uk. J

Kemtile Brings Bespoke Kagetec Floor Tiling Solution to Brioche Pasquier UK emtile, installers of food grade hygienic flooring systems K and drainage, has further strengthened its bakery industry credentials with the completion of Brioche Pasquier's (BPUK) new bakery plant in Milton Keynes. BPUK required a specific

tiled flooring solution that was in keeping with the floors installed in their other plants located throughout France and Spain as well as America - specifically in terms of tile design and colour and most importantly service life. Kemtile recommended its Kagetec AR Ceramic floor tiling system, which uses 18mm thick Argelith MV-Tech hexagonal ceramic floor tiles. Sample boards were provide to confirm that the specific design and colour criteria could be achieved and senior BPUK representatives visited other local installations where the Kagetec flooring system had been installed. After assurances from these reference visits that the Kagetec floors had not had to be repaired and had performed as specified, BPUK ordered the Kagetec AR system for the new 6000 sq m bakery. It was laid throughout the plant including the mixing hall, main hall, silo area and plant rooms.The unique Kagetec AR System is capable of withstanding thermal, mechanical and chemical stresses and will therefore require very little maintenance besides cleaning and offer a long term flooring solution. For further information call +44 (0)1925 763045 or email enquiries@kemtile.co.uk. J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I SMART FACTORY

Automated Data Collection Made “Orange” With data collection and storage, plant managers are focused on increasing marginal gains by reducing costs, such as with unplanned downtime, and improving flexibility. In the majority of production environments, paper documentation is still the preferred use of data collection, which causes delays as well as potential data quality issues. here are too many existing assets on the T shop floor that have not been “digitised”. However, a control engi-neer can help implement a more elegantly simple solution to bring brownfield sites towards higher produc-tivity and effectiveness by implementing B&R’s Orange Box. We sat down with Ralf Hagen, E&A/MES engineering manager at Nestlé Germany, to find out more about how the Orange Box transforms their production. Mr Hagen, what makes a factory a smart factory? Ralf Hagen (Nestlé): In a smart factory, components need to communicate and interact in a much better way than what we're currently used to. There should be an unbroken logical chain for each customer order that can be executed automatically, start to finish. A machine should know when it needs to speed up or slow down – when it should request additional materials or refuse them. Currently,

Ralf Hagen (Nestlé) and Thomas Rienessl (B&R) discuss the Orange Box manufacturing intelligence solution for brown-field equipment.

these decisions still require the experience of human operators, but in the future the machines should be able to handle them autonomously. Are all Nestlé plants already "smart"? Hagen: No. That's in large part due to the size of our company. Smaller plants have less clout when it comes to innovations, market penetration and investments. Our plants vary greatly with regard to sector and size, so the level of smart manufacturing really runs the gamut.

B&R's Orange Box is the perfect platform for Industry 4.0 production.

Has Nestlé set concrete production goals? Hagen: With regard to KPIs – yes. The most straightforward definition is in terms of overall equipment effec-tiveness, or OEE. We have set OEE targets and time frames for achieving them.

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

migrate. So far, the B&R system is the only one that can do this. How has your experience been with the Orange Box at the Nestlé plant in Osthofen? Hagen: Installing and configuring the prototype turned out to be even faster and easier than we expected. Now we're working on improving the analysis results and how they are displayed for daily use such as shift handover meetings.

So that's one of the main challenges – but I'm sure there are others. Hagen: There definitely are, because of the many correlations. If your machine has problems with unplanned downtime, for example, you also tend to have problems with operator safety. The more often they have to intervene, the greater the risk of injury. Another key aspect is energy efficiency. When a line is constantly starting and stopping and starting and stopping, that has a real impact on consumption. At the same time quality suffers, because of the waste that is produced when the machine is starting up or shutting down.

Can you tell us more about the solution you developed with B&R? Hagen: We created a solution that evolves modularly and organically – that's really the art of it. After all, we live in a world of constant change. If you put a system in place and say "OK, that's it" – you're going to run into trouble when it comes time to

What are your future plans for the Orange Box? Hagen: What we want to have is intelligent analysis that identifies the root causes of a problem before the problem ever occurs. Over the next four years, we want to get to a place where the machines warn us of an impending stoppage in advance, rather than having to troubleshoot after the fact the way we do now. Even-tually, there should be no more unplanned downtime whatsoever, and the Orange Box will help us increase both machine availability and output. In summary, automated data collection with the Orange Box concept allows for a user to easily and quickly have a system up and running to set in place a plan for reduction in unplanned downtime and create a more agile production process. To learn more, join B&R at our Innovation Day on the 21st of September being held at Jaguar’s Customer Experience Centre in Birmingham. Click here to register or find out more: www.br-automation.com/engb/perfection-in-automation/innovationday-br-uk-ireland/ J

Safety, energy, product quality: these are the main areas where Nestlé is looking for improvement? Hagen: Yes, those are the areas that are the easiest to quantify globally. How did Nestlé arrive at B&R for the solution? Hagen: We talked to many potential suppliers, but B&R was the only one who could offer the total package of structure, framework, applications and modularity we were looking for. We wanted someone able to en-capsulate the necessary expertise in a thoroughly tested package that you can install, use and update with the push of a button like a smartphone app.

The Orange Box collects and evaluates data from previously isolated machines and lines and helps plant operators get existing equipment up to speed for smart manufacturing.

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

ENERGY

ENVIRONMENT

I ENERGY MANAGEMENT

Food For Thought – Containerised Energy Solution Over the previous four issues of Food and Drink Business Europe, we’ve explored and provided a strong case for why your food processing factory, with its high energy costs, should implement a policy of Self-Generation for electrical needs with Combined Heat and Power (CHP) application or without waste heat recovery to reduce your energy costs. HP, as a well-established technology, offers the best fit solution because it C maximises the efficiency of the overall system by producing site heat as well as power, but if you have no real use for the heat, have you thought about simply producing “on site” electrical generation? CHP installations are sized on the site heat load, which is often less than the corresponding power demand. Also, CHP installations require integration into the site heating circuit, which adds complexity and cost to the overall system, especially if there is a steam requirement. So both, or either option, may well be a viable solution. Based on data collated in 2016, the imported cost of power was approx. 10p/kWh depending on the time of day and year. The cost of process heat would typically be no more than 3p/kWh, hence from a site operational cost point of view, power is just as viable as the heat. Furthermore, the cost of imported power from the National Grid is set to rise over the next few years irrespective of gas and oil prices. This is due to significant known and predicted rises in the non-commodity part of the supplied power price; ie the transmission/distribution charges and taxes and levies, as shown in the graph.

When installing a generating set on a site, sizing it for the peak operational import will maximise the potential offset power cost savings. This would not only offset electrical import from the National Grid when it is the most expensive, but also reduce the site power imported from the grid to a low level. By offsetting the imported power cost only (and not using the heat from CHP application), the capital cost of purchasing the power generation equipment (generating set, container, and operation and maintenance contract) can be paid back typically within three years from installation. Using even a small proportion of the heat in low grade applications (e.g. space heating) will improve investment payback. We call this SelfGeneration. The installation of a generating set used for Self-Generation is as viable as CHP application. There is no requirement for installing close to factory power house, hence the generating set can be positioned outside and have the gas piped to it and the power cable routed to the site ring main. This simplification is enhanced by having a modular containerised solution.

Containerised Solution Containerisation, essentially a weatherproofed enclosure housing the generating set and separate control room, is typically installed externally but can also be installed within an existing building. All the generation set installation requirements such as air flow, serviceability, safety, cooling are accommodated and the container provides effective noise attenuation to meet all site and planning specifications. The control system has full telemetry and is internet based. The system is designed to integrate simply with any site system, and has proprietary software which is free to all. Edina’s containerised solution and control panel systems are manufactured inhouse at our state-of-the-art UK production facility. Our technical designers and engineers produce bespoke solutions that reduces overall project risk, planning, design, build, installation and commissioning of the equipment. Our ‘one point of contact’ approach ensures high quality of control, workmanship and design, which enables optimum tuning of all components to maximise plant reliability and availability. Ease of Installation When the container is delivered and connected to the sites gas and electrical connections, it is now capable of producing power. If the site is prepared, the deliver to power production is within a few days. Due to its compact design and accessibility for service and maintenance, a containerised solution offers a smart and efficient ‘plug and play’ approach, designed to expedite site installations, provide low maintenance cost and ensure maximum availability. Furthermore, due to its modular design, our containerised solution can be rapidly

FOOD & DRINK BUSINESS, JULY/AUGUST 2017

ENERGY

ENVIRONMENT

Our containerised solutions are manufactured in-house at our state-of-the-art- production facility in Lisburn, Northern Ireland.

dissembled and redeployed, offering a low risk and attractive proposition for asset funders. About Edina – What We Do Sizing the correct generating set to your sites electrical and heat demand is paramount, and will potentially reduce any unnecessary costs and further maximise your return on your investment.

Edina is a total energy solutions provider and delivers the complete power generation project. We provide a free feasibility study and energy review to assess the viability of Self-Generation and CHP application for your business. As the official UK and Ireland distributor for MWM, we believe their generating set technology is the market leader for achieving guaranteed maximum efficiency, relia-

bility, flexibility and environmental sustainability, together with low lifecycle costs and high profitability. MWM are world renowned, and with over 4,900 engines installed worldwide, we have successfully installed generating sets for UK and Ireland food manufacturers, such as Arla Foods, Ferrero, Coke Cola, PepsiCo, Kerry Ingredients and Princes Foods. The implementation of Self-Generation and CHP application mitigates against increasing power prices and reduces energy costs, carbon emissions and supports improved business competitiveness. In conclusion, Self-Generation and CHP offers a realistic and cost effective solution to reduce your overall power bill, and more importantly, protects it from future cost rises and the uncertainty of Brexit. For more information about the feasibility of Self-Generation and/or CHP within your business, please contact me at ianfarr@edina.eu or visit www.edina.eu. J

I ANAEROBIC DIGESTION

Pasteuriser Helps Muntons Reduce Utility Bills by £2.5 Million wo years ago, UK malted ingredients company Muntons, based T at Stowmarket in Suffolk, commissioned a novel £5.4 million on-site anaerobic digestion (AD) plant. Since then, it has treated almost 150,000 cubic meters (150 megalitres) of effluent, preventing almost 800 tonnes of CO2 emissions and saving the company more than £2.5 million in energy and disposal costs. A vital part of this operation, which combines anaerobic and aerobic waste treatment, is a 3 Tank Batch Sludge Pasteuriser System with Energy Recovery from HRS Heat Exchangers. Pasteurisation has been a key element in the project’s overall success, both in the certification of the resulting material, which is used as a biofertiliser, and in reassuring farmers of its quality. Closing the Loop As a company, Muntons has sustainability at its heart. It first became interested in AD after analysis showed that 60% of the carbon footprint of its supply chain came from the artificial fertiliser used by its growers, who supply the company with 250,000 tonnes of barley each year. Muntons appreciated that if a proportion of the liquid waste from the 180,000 tonnes of malt it produces every year 60

could be treated through AD, it could produce a high quality organic biofertiliser for its farmers to use instead: closing the loop between farm and fork and significantly reducing its carbon footprint. Not only has this been achieved, but there have been other benefits, too - the AD plant prevents 3,000 tanker movements per year and generates around 12% of the site’s electricity demand. Plus, the company has saved an estimated £27,000 through TRIAD avoidance tactics – by loading up the digester and storing biogas throughout the day Muntons can run the CHP engine at full speed during TRIAD warning periods to avoid higher priced electricity. Working Towards End of Waste Muntons’ AD plant treats around 200m3 (200,000 litres) of high COD liquid waste a day. The resulting digestate is then blended with low COD effluent before being treated with Dissolved Air Flotation (DAF) in Muntons’ existing Activated Sludge plant. This stabilises the digestate and removes further COD, nitrates and phosphorus, prior to the effluent being discharged to local waterways in accordance with an EA permit. The remaining sludge is

FOOD & DRINK BUSINESS, JULY/AUGUST 2017

ENERGY

ENVIRONMENT

then pasteurised in the HRS 3 Tank unit, and used as biofertiliser. Because the Muntons’ technique uses a mixture of both anaerobic and aerobic treatment processes, this sludge cannot be certified as meeting the standards of either PAS100 or PAS110. However, it is treated in accordance with the requirements of the PAS110 standard for anaerobic digestate, based on conventional HACCP principles. According to Ryland Cairns, Muntons’ Environment Manager, this is where the HRS pasteurisation process is crucial: “We want our biofertiliser to compete in the agricultural market with the likes of PAS110 digestate and other biosolids which have undergone pasteurisation. Even though we are considered low risk and all our feedstock is from traceable, food grade grains, we felt that pasteurising our material is the best way to help us get End of Waste Certification. It also reassures local farmers that we will not contaminate their land with ergot or plant pathogens.”

The Benefits of Pasteurisation The HRS system works on a three tank principle; while one tank is being filled, the second tank holds the sludge at 70°C, at the same time as the third tank is being emptied (each process lasts one hour). Waste cooling water from the CHP engine is used to heat the sludge in corrugated tube-in-tube heat exchangers, which is more efficient than heating an entire tank of digestate. HRS has also incorporated an energy recovery section into the process to make it even more efficient: energy is transferred from the hotter (pasteurised) sludge to the colder (unpasteurised) sludge, reducing energy consumption by up to 70% compared to conventional systems and using heat which would otherwise be wasted. It also has the advantage of being able to run at a half flow rate, should the volume of digestate stock reduce, and the equipment’s monitoring features ensure that every batch of digestate can be traced back to the feedstock from which it was produced Once pasteurised, the biofertiliser can be dewatered if required; it can be supplied for application either as a liquid for soil injection or a solid for muck spreading. Analysis by Muntons has shown that their biofertiliser is higher in nitrogen, potash and sulphur than most biosolids, as well as being a good source of phosphate and magnesium. The biofertiliser is used on local land from which the company sources its malting barley, but the company is also keen to stimulate the wider biofertiliser market. Learning From the best As a company which is setting the standard in agri-food sustainability, Muntons is keen to share its experiences with the wider industry and has worked with the Anaerobic Digestion and Bioresources Association (ADBA) on the production of its Industry Best Practice Guidance. J FOOD & DRINK BUSINESS, JULY/AUGUST 2017

I CHEESE & WHEY

Healthy Prognosis For Global Whey Ingredients Market Driven by increasing consumer concerns about health and well being globally, the demand for whey protein is growing and European dairy processors are continuing to invest in new capacity and the latest technology to produce more sophisticated ingredients for the food, beverage and pharmaceutical industries. hey has many nutritional qualities â&#x20AC;&#x201C; it is an excellent source of protein and essential amino acids - and has useful functional characteristics, such as solubility, foaming and gelling that are attractive to food and beverage processors. Because of its high nutritional value and excellent functional qualities, whey and whey components have become a highly versatile food and beverage ingredient with a multitude of processing applications. Whey products are a combination of high-quality proteins, lactose, bio-active components, minerals and vitamins. Within the dairy sector, whey and its ingredients are used in products such as yoghurts, milk drinks and ice cream. Whey

curd during cheese manufacture. As a rule of thumb, 1 kg of cheese is equal to 560 grams of whey in dry matter. The EU is the worldâ&#x20AC;&#x2122;s leading producer of cheese and is also the largest producer of whey globally. The EU exported more than 540,000 tonnes of whey worldwide in 2015. China is the leading importer of EU whey and other Asian countries are also major buyers.

Market Expansion Supported by advances in separa- Whey is the serum or liquid part of milk separated from curd tion and refinement technology, during cheese manufacture. the whey ingredients industry in Europe is developing increasingly sophisti- Goulburn from Australia. Smaller cated products capable of a European whey and lactose ingredient widening range of applications companies such as Meggle and Milei of within the global food, bever- Germany, Euroserum of France, Carbery of age and neutraceuticals mar- Ireland and UK-based Volac tend to focus kets in response to growing on various speciality products. consumer concern about Many European dairy companies are health and wellness. continuing to invest in additional whey The global whey protein processing capacity and the latest technolomarket will be worth $13.5 gy to facilitate the development of new billion by 2020, according to added value products. For example, Arla BCC Research, having Foods is currently spending about Eur31 Whey is used as a value added ingredient, featuring in products expanded at a five year annual million on upgrading and expanding its across the meat, fish, bakery, confectionery, snack foods and infant compound growth rate Denmark Protein site near Videbaek in formula sectors. (CAGR) of 6.5% since 2015, when the is used by the broader food industry as a market was valued at $9.2 billion. value added ingredient, featuring in products across the meat, fish, bakery, confec- Major Players tionery, snack foods and infant formula Not surprisingly, the biggest playsectors. ers within the whey and lactose Whey is also used widely within the ingredients market are also the sports nutrition sector in products such as leading dairy and cheese compaprotein waters, protein bars and shakes, and nies. The largest European groups is becoming a key ingredient in specialised include Lactalis, Frieslandnutrition where it is incorporated in foods Campina, Arla Foods, Glanbia and for the elderly and slimming foods. DMK Group, which compete in global markets with major internaCheese and Whey tional dairy processors such as USOnce regarded as a waste stream from based Agropur, American Dairy Because of its high nutritional value and excellent functional cheese making, whey is now recognised as a Products Institute and Davisco qualities, whey and whey components have become a highly valuable dairy ingredient. Whey is the Foods International, Fonterra of versatile food and beverage ingredient with a multitude of serum or liquid part of milk separated from New Zealand and Murray processing applications. FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

quality baby food. Glanbia Ireland (formerly Glanbia Ingredients Ireland), the number one dairy ingredients company in Ireland, is expanding its cheese plant in Wexford entailing investment of Eur35 million. Exporting To market the output from its investment in demineralised whey dairy products to over 60 powder and GOS production at Davidstow, Dairy Crest has formed a countries, Glanbia Ireland is a joint venture with New Zealand-based Fonterra Co-operative Group, 60:40 joint venture between which is the world's leading dairy exporter. Glanbia Co-operative Society and Glanbia, the global nutriDenmark, which produces protein, lactose tion group. As well as increasing Glanbia and other highly value added whey-based Ireland’s cheese processing capacity, the ingredients for the global food industry. investment will deliver a valuable whey The investment is key to meeting Arla stream for the sports nutrition sector, Foods’ ambition to be a global leader in which is one of Glanbia’s key market platnatural whey ingredients for food producers forms. in a range of categories – from bakery, beverages, dairy and ice cream to medical, Joint Ventures infant and sports nutrition. Following the disposal of its dairies busiDairy co-operative Mlekpol, Poland’s ness, UK-based Dairy Crest is now focused largest dairy processor, is planning to con- on its spreads, butters, cheese and whey struct a new milk processing facility to activities. Dairy Crest has just invested £45 allow for more efficient production of high- million to manufacture demineralised whey er value added dairy products. Involving powder, a base ingredient in infant formuinvestment of PLN400 million (Eur95 mil- la, from the whey generated at its cheese lion), the new facility, which is due to reach making factory at Davidstow in Cornwall. full production in mid-2019, will manufac- Dairy Crest has also spent £20 million at its ture specialised products such as high puri- Davidstow site to manufacture galactoty whey and milk protein, as well as high oligosaccharide (GOS), a lactose-based pre-

biotic, widely used in infant formula. To market the output from its investment in demineralised whey powder and GOS production at Davidstow, Dairy Crest has formed a joint venture with New Zealandbased Fonterra Co-operative Group, which

Arla Foods’ ambition is to be a global leader in natural whey ingredients for food producers in a range of categories – from bakery, beverages, dairy and ice cream to medical, infant and sports nutrition. Henrik H Andersen, chief executive of Arla Foods Ingredients.

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

is the world's leading dairy exporter. Fonterra has been steadily increasing its influence in Europe. It recently opened its first wholly owned and operated dairy ingredients plant in Europe, as part of a strategic partnership with Dutch cheese manufacturer Royal A-ware. The new site at Heerenveen in the Netherlands consists of two plants working in tandem - A-ware’s facility produces cheese for its customers in Europe, while Fonterra’s processes the whey and lactose generated by A-ware. Another recent joint venture of this type is an alliance between DMK Group and Arla Foods to create ArNoCo. Based at DMK's Nordhackstedt site in Germany, ArNoCo processes the whey produced by the cheese making operation – around 700,000 tonnes every year – to make whey protein concentrate and lactose, which is marketed by Arla Foods.

ents but use them extensively in their infant nutrition and other food products. Both are currently investing in expanding their infant products capacity in Europe. Danone is spending Eur240 million on building a state-of-theart plant at Cuijk in the Netherlands for its Early Life Nutrition business. Intended to capitalise on strong and growing demand for Danone’s international brands, including Aptamil and Based at DMK's Nordhackstedt site in Germany, ArNoCo Nutrilon, for both standard and processes the whey produced by the cheese making operation – specialized products, the new fac- around 700,000 tonnes every year – to make whey protein tory is due to start production in concentrate and lactose, which is marketed by Arla Foods. late 2017. It represents Danone’s largest investment in its European produc- successful in segmenting the market by tion capabilities and will double its capacity investing in new technology to produce in the Netherlands with output being increasingly sophisticated products. Many exported to more than 80 countries global- producers have developed and are now ly. marketing added value whey protein ingreInvestment in Infant Nutrition In Switzerland, Nestlé recently complet- dients for use in infant nutrition, sports Nestle and Danone, the two largest dairy ed a SFr82 million (Eur75million) invest- formulae and to enhance the nutritional companies in the world, are not involved in ment to expand its infant products factory content of a wide range of mainstream the production of whey and lactose ingredi- at Konolfingen. The new state-of-the-art foods. The rising consumption of perforfacility will produce infant for- mance/sports nutrition products in mature mula to meet increasing markets and the continued demand for demand from consumer in 90 infant nutrition products in emerging countries. The investment has regions, particularly Asia, are fuelling the reinforced the Konolfingen growth in whey protein-based nutritional site’s position as Nestlé’s world ingredients. centre for children’s milks, cereals, probiotics and spe- Outlook cialised food for infants and The long- and short-term market prognosis children. Nestlé’s Produce is healthy. Rising consumer concern about Technology Centre focusing health and well being will continue to drive on the development of infant demand for whey-based products. Indeed, formula, dairy products and whey is expected to become key in tackling medical nutrition is also based modern lifestyle-related health issues such at the Konolfingen site. as obesity and sarcopenia. Whey will also play a central role in helping to meet the Glanbia Ireland (formerly Glanbia Ingredients Ireland), the number protein requirements of an expanding globone dairy ingredients company in Ireland, is expanding its cheese Increasing Added Value Whey processors have been al population. J plant in Wexford entailing investment of Eur35 million.

I WHEY PROCESSING

Future-proof and Robust end-to-end Solutions From Tetra Pak re you considering venturing into the A production of innovative milk and whey protein ingredients? Balancing return on investment and efficiency with product range flexibility, quality standards, future capacity needs, differentiation and growth strategies is a considerable challenge when planning a new processing plant. Tetra Pak experts can help incorporate

the necessary level of flexibility and scalability into your process plant to make the investment robust and future-proof. With its end-to-end line solutions, complete portfolio and experienced teams Tetra Pak provides line solutions that will deliver maximal return on your investment, constantly looking to give your business a dynamic advantage, while protecting what’s good: Food, People and Futures. J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

GEA Supplies Lights-out Packing For 200 Micron Powder in South-East Asia EA has once again supplied its limited G intervention powder filling system, RBF-500 Li, to a specialist powdered product application The system provides lights-out packing for a 200 micron powder, thereby reducing the opportunity for human error during packing, protecting the plant operators and providing the dust control and accuracy required by the company. The customer, based in South-East Asia, was looking for a highly accurate solution for its product. The powder has a microparticle size and, in its bulk form, must be handled carefully to avoid creating dust that is both wasteful and which could contaminate the working environment. Although the customer already has a number of packing lines, none can match the accuracy, consistency and dust control features of the GEA RBF-500 Li. As a result of the ever increasing market for the product, and the requirement to continue to protect the environment by minimizing power losses, the customer selected the 500 Li unit as the only solution suitable for this application. Eliminating Dust Migration, Improving Product Safety The GEA RBF-500 Li is a compact, single-head, lights-out filling machine that delivers benefits from improved reliability and absolute product integrity. It brings together the separate elements of the filling line into a single machine. The design offers complete control of the bags throughout the process and includes a deaeration station for improved bag stability and automated neck stretching, heat sealing and weight checking. It has a fully enclosed filling area that eliminates dust migration and eliminates the risk of product contamination. The weight data from

The RBF-500 Li filler from GEA.

the check-weigher is used to auto-tune the filling process and maintain the filling accuracy. Its automatic, ‘lights-out’ operation provides exceptional productivity and aims to reduce human intervention, and therefore the risk of contamination and human error, to an absolute minimum. The GEA system uses a vertical filling technique in which the filling head is lowered into the bag and withdrawn as the bag fills. This discharges the powder into the bag carefully, thereby significantly reducing the creation of dust that would otherwise contaminate the working area and waste valuable product. Before sealing, the system removed excess air from the package to minimize the packed volume

and ensure product freshness. Bags are filled with a guaranteed accuracy of up +/10 to 20 grams at 1 Sigma depending on the product being filled. Derek Williams is the GEA sales manager in Singapore who has been working on the project from the start. “The material is extremely dusty so our bottom-up filling system works much better than ordinary horizontal systems as the powder doesn’t fall into the bag, it’s placed there,” he says. “Our machine is also capable of reliably and consistently meeting the customer’s accuracy specification which has not proved possible on any other machine.” For business inquiries contact Derek Willliams, Sales Manager at Tel +65 65014886; Mobile +65 92348279; Email Derek.Williams@gea.com. GEA is one of the largest suppliers of process technology for the food industry and a wide range of other industries. The international technology group focuses on process technology and components for sophisticated production processes in various end-user markets. J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I WHEY

‘Whey Better than Ever’ – 8th International Whey Conference The 8th International Whey Conference will be held in Chicago, USA, on September 17-20, 2017, and will focus on the cutting-edge developments in science, industry and the global marketplace with respect to whey.

he conference will feature presentations reviewing the global supply of whey as well as the markets for various wheybased products. Keynote speakers will address the current state of the whey business, examining all aspects of its competitive strengths and weaknesses as well as the opportunities and threats in the industry. Indeed, IWC 2017 will be one of the largest and most important international gatherings for the whey industry taking place in North America in 2017. Each day of the conference will feature a program of keynote speakers, plenary panel discussions, targeted nutrition and innovation sessions, as well as dedicated poster sessions. An active and informative exhibit hall will also be featured dur-

ing the conference as well as first-class receptions. IWC-2017 Market Place The IWC-2017 Market Place will be the central gathering place at the conference for networking - with an exhibition of innovative whey-based ingredients, processing equipment and products, poster presentations and demonstration stations. Here, whey industry professionals and researchers from all over the world will discuss how to connect the science and technology to real-world commercial applications. IWC-2017 will also feature oral presentations, posters and insights from researchers that have only recently begun their scientific careers in this exciting field of study and will be recognized during a ‘Young Scientist of the Year’ awards presentation. Chicago will be the place to consider every possible solution to make "Whey better than ever!" J

New Whey Protein Goes Soft on Tough Snack Bars rla Foods Ingredients has cracked the problem of hard protein A bars with a new whey protein solution that stays soft for at least a year. Nearly half of US consumers (45%) purchased a high-protein bar in the past month, according to research. However, due to textural deterioration during shelf life – a common issue with high-protein snack bars – it’s likely that many of the bars had lost their soft and chewy texture by the time they were eaten. To address this challenge Arla Foods Ingredients has developed Nutrilac® PB-8420, a whey protein that ensures protein bars retain an indulgent cohesive (chewy) texture for 12 months or more in ambient storage conditions. Furthermore, the ingredient is all-natural and derived from cows’ milk – helping to keep the recipe simple and ensure consumer demand for clean and clear labels is met. To showcase the new protein solution, Arla Foods Ingredients has created a 28%-protein apple & coconut protein bar concept that is the perfect blueprint for sports nutrition applications. J FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I FLAVOURS

Givaudan to Acquire Vika ivaudan, the global leader in flavours G and fragrances, is acquiring Vika to strengthen its portfolio of natural dairy solutions. Vika offers a range of natural dairy ingredients, fonds and stocks, as well as meat and plant based extracts to customers in the food and beverage industry. With headquarters in the Netherlands, Vika also has facilities in Belgium, the UK, and New Zealand, employing globally over 200 employees. Gilles Andrier, CEO of Givaudan, says: “Expanding our offering in naturals is a key priority for Givaudan in the context of our 2020 strategy. Vika’s products, technologies and talent will strengthen our existing capabilities and our ability to develop new taste solutions. We are delighted to welcome Vika’s employees to our Company and are confident that their industry expertise will accelerate Givaudan’s position with existing and new customers.” Mauricio Graber, President of

Givaudan’s Flavour Division, says: “Savoury and dairy are two categories where consumers feel all-natural ingredients are important and it is our aim to keep strengthening our offering in these sectors. We look forward to leveraging Vika’s expertise which will complement our own heritage and knowledge in extraction, fermentation and concentration of natural ingredients, opening up new market opportunities for both companies.”

While terms of the deal have not been disclosed, Vika’s business would have represented approximately Eur64 million of incremental sales to Givaudan’s results in 2016 on a pro forma basis. Givaudan plans to fund the transaction from existing resources. The planned acquisition remains subject to formal approvals from the relevant antitrust authorities. The transaction is expected to close in the second half of 2017. J

Frutarom Strengthens its Position in Savoury Flavours rutarom Industries, one of the world's F largest companies in the field of flavours and specialty fine ingredients, is exercising its option for the purchase of the remaining 5% balance of share capital of Les Ingredients Alimentaires of Canada for approximately US$2 million (C$2.75 million). This follows the acquisition of 95% of BSA’s share capital in May 2015. BSA was founded in 1989 and its main activity is the development, production

and marketing of unique and innovative savoury taste solutions (the non-sweet spectrum of flavours) that include seasoning blends and functional ingredients for the food industry, with particular focus on the areas of processed meats and convenience foods. BSA has a large and efficient production site in Montreal and around 150 employees. The acquisition of BSA has greatly strengthened Frutarom’s position in the field of savoury in North

America. Since the acquisition BSA has exhibited double-digit growth along with significantly improved profitability margins. Ori Yehudai, President and CEO of Frutarom, comments: “Frutarom sees great strategic importance for rapid growth in the field of savoury flavours in which it now holds a leading market position, and is focused on developing unique innovative natural and healthy products with high added value at its sites throughout the world. The global market for savoury flavours is growing due to the rise in standard of living and changes in lifestyle and consumer habits bringing about increased demand for processed and convenience foods both for home consumption and for eating out. Frutarom embarked about 10 years ago on a strategic course of action to significantly build up its global savoury activity by acquiring leading companies in their fields possessing unique solutions and a strong position in strategic target markets.” J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I FLAVOURS

McCormick Strengthens Flavour Leadership With $4.2 Billion Acquisition cCormick & Company, the US-based M ingredients producer, is acquiring the food business of Reckitt Benckiser Group, the consumer health and hygiene company, for $4.2 billion. Reckitt Benckiser’s food business, which incorporates Frank's RedHot Hot Sauce, French’s Mustard and other market-leading products, will strengthen McCormick’s leadership in the attractive condiments category in the US. Operating facilities in 27 countries and with $4.4 billion in annual sales, McCormick manufactures, markets and distributes spices, seasoning mixes, condiments and other products to retailers, food manufacturers and food service operators. The Americas accounts for 67% of group revenue, 20% is generated by EMEA (Europe, Middle East & Africa) and 13% from the Asia Pacific Zone. McCormick will integrate RB Foods

into its Consumer and Industrial segments. Combined pro forma 2017 annual net sales of the enlarged McCormick are expected to be approximately $5 billion. As a result of increased scale, McCormick expects to achieve cost synergies of approximately $50 million, the majority of which will be achieved by 2020. “The acquisition of RB Foods strengthens McCormick's flavour leadership with the addition of the iconic French's and Frank's RedHot brands to our portfolio, which will become our number two and number three brands, respectively,” says Lawrence E Kurzius, chairman, president and chief executive of McCormick & Company. “RB Foods' focus on creating products with simple, high-quality ingredients makes it a perfect match for McCormick as we continue to capitalize on the growing consumer interest in healthy, flavourful eating.” J

I PERMEATES

New Codex Standard Will “Spark Permeate Market into Life” he final approval of a Codex T Alimentarius international standard for dairy permeate powder has been given a warm welcome by Arla Foods Ingredients, one of the world’s leading permeate producers. The new science-based standard establishes global criteria for the identity, composition, safety and quality of powdered milk and whey permeates for the first time. It is expected to accelerate demand for permeate and open up new sales channels, particularly in Asia. Charlotte Sorensen, Senior Project Manager at Arla Foods Ingredients, says: “This new Codex standard for dairy permeate is very good news. We believe it will spark the permeate market into life, generating new sales opportunities for a valuable and affordable ingredient that has often been overlooked. Permeate is still a relatively new product in the food industry and the Codex standard will help to raise its profile and build trust in this natural, safe and highly functional ingredient.” Permeate is a by-product of whey manufacturing. It is a low-cost, carbohydrate ingredient often used as a bulk sweetener in

snacks, chocolate, confectionery, ice cream, desserts, beverages and bakery products. Permeate is highly valued for its ability to replace other, more expensive milk solids in food products without altering the taste or texture, or requiring any changes to processing parameters. Used as an alternative to whey powder, demineralised whey powder and lactose, whey permeate can optimise product quality in a range of applications. However, until now, there was no Codex agreement for dairy permeate, a factor that deterred many countries from allowing it in food and beverage products. China, for example, offers huge potential for the ingredient, but the lack of a standard means the authorities have not permitted its use. In other parts of the world, permeate is already approved – but many companies have been reluctant to use it due to a lack of a global consensus on how it should be labelled. At the Codex annual meeting in summer 2015, dairy companies agreed to develop a new standard for permeate within two years in order to address this and other technical issues, such as harmonisation of product quality and consistency. The standard was

finalised and approved this month (July 2017) and comes into effect immediately. Charlotte Sorensen adds: “This development will be welcomed by the whey industry as a whole because it will add more value to what is a major by-product of the whey protein manufacturing process. Creating and approving the standard was a joint effort by the dairy industry over the past two years, and we look forward to watching the market grow in the future.” In recent years Arla Foods Ingredients has invested significantly in the manufacturing of high quality food-grade permeate as a free-flowing powder with a pleasant and stable taste profile. The company has a permeate production facility in Denmark, which manufactures Kosher and Halal certified whey permeate – demand for which is expected to increase in 2017 and beyond. It also has joint venture facilities in Argentina (with Sancor) and in Norway (with Tine). J

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017

I MARKET FOCUS

Ice Cream Whips Up Global Sales of 13 Billion Litres The global ice cream market is expected to scoop sales of 13 billion litres in 2016, with India, Indonesia and Vietnam among the world’s fastest growing markets, according to new research from Mintel. hile India’s ice cream market has experienced a Compound Annual Growth Rate (CAGR) of 13% over the past five years, in 2017, volume sales in India are set to overtake those of more established markets, including the UK. Ice cream sales in India are forecast to reach 381.8 million litres in 2017, with the market forecast to reach 657.2 million litres in 2021. India’s strong CAGR is closely followed by Indonesia (11%), Vietnam (9%), Turkey (9%) and Malaysia (8%). On the other hand, sales of ice cream in other markets are flakey. Volume sales of ice cream in Switzerland have had a CAGR of -3% over the past five years, followed by Thailand (-2%), Denmark (-2%), the UK (-2%) and the US (-1%).

Global Leader China is currently the world’s biggest ice cream market, with sales estimated at 4.3 billion litres in 2016, followed by the US (2.7 billion litres) and Japan (756 million litres). However, in terms of individual ice cream consumption, Mintel research finds that Norwegian consumers are the biggest ice cream eaters, consuming 9.8 litres per capita in 2016, followed by Australia (9.4) and Sweden (8.9). Alex Beckett, Global Food and Drink Analyst at Mintel, comments: “Food historians credit China with inventing ice cream and Marco Polo for introducing it to Italy on his return from the Far East. Skip forward to the 21st century, and the rate at which Western ice cream makers are looking to the East for inspiration promises to see renewed momentum. The rapidity with 72

which India’s ice cream market is expanding is worth noting. The low per capita consumption of retail ice cream in India demonstrates the exciting potential in what is the world’s second most populated country, although competition from street vendors should not be underestimated.” Indeed, with the East’s love of ice cream thickening, one in three (32%) ice cream products were launched in Asia Pacific in 2016, up from 26% in 2013. What's more, the share of ice cream products launched in North America fell from 19% to 14% in the same time period. Innovation Western consumers are increasingly looking to try ice cream products with more Eastern inspired flavours. Over a quarter (30%) of Canadians would be interested in ethnically-inspired ice cream flavours, such as green tea or mango, while 23% would be interested in internationally inspired ice cream formats, such as Japanese mochi ice cream or Indian kulfi. In Europe too, ice cream eaters are acquiring a taste for the exotic. As many as 20% of Italian, 17% of Polish and 16% of French consumers would be interested in trying ice cream with ethnic-inspired ingredients, such as wasabi, green tea or saffron.

increased from 2% in 2014 to 3% in 2015 and 4% in 2016, with Europe accounting for 59% of all launches in 2016. The rise in innovation comes as many consumers are looking to cut down on their dairy consumption. As many as three in 10 (29%) Italians say they are actively reducing their consumption or are avoiding dairy, followed by a quarter (23%) of French consumers, 16% of Polish consumers and 14% of Germans. Germany, meanwhile, is a hotbed of non-dairy ice cream innovation, and accounted for 19% of global vegan dessert and ice cream launches in 2016 – more than any other country. This reflects Mintel research that 63% of German ice cream consumers express an interest in non-dairy versions. “Consumers’ aspirations to live healthier and ‘cleaner’ lifestyles are motivating them to increasingly prioritize fruits, vegetables, nuts, grains, spices and botanicals. Consequently, plant ingredients and vegan claims are becoming more prominent in a variety of food categories – including ice cream,” Alex Beckett concludes. J

Growing Appetite For Vegan Ice Cream Finally, Mintel research shows that ice cream aisles throughout the world have been experiencing a dairy-free makeover. The share of global dessert and ice cream launches featuring a vegan claim has

FOOD & DRINK BUSINESS EUROPE, JULY/AUGUST 2017